Publication 561 (Rev. February 2024)

Contents

What’s New .................. 1

Future Developments ............ 1

Introduction .................. 1

What Is Fair Market Value (FMV)? ..... 2

Valuation of Various Kinds of

Property ................. 4

Substantiation of Noncash

Charitable Contributions ....... 9

Penalty .................... 12

How To Get Tax Help ............ 12

Index ..................... 15

What’s New

New actuarial tables. New actuarial tables

used to determine the present value of a chari-

table interest donated to a charitable organiza-

tion have been published. These new actuarial

tables were effective June 1, 2023. However, for

a period prior to June 1, 2023, there is a transi-

tional rule allowing filers to elect to use either

the former or the new actuarial tables. The tran-

sitional rule applies for donations with valuation

dates from May 1, 2019, through June 1, 2023.

See Actuarial tables, later.

Future Developments

For the latest information about developments

related to Pub. 561, such as legislation enacted

after it was published, go to IRS.gov/Pub561.

Introduction

This publication is designed to help donors and

appraisers determine the value of property

(other than cash) that is given to qualified or-

ganizations. It also explains what kind of infor-

mation you must have to support the charitable

contribution deduction you claim on your return.

This publication does not discuss how to fig-

ure the amount of your deduction for charitable

contributions or written records and substantia-

tion required. See Pub. 526, Charitable Contri-

butions, for this information.

Comments and suggestions. We welcome

your comments about this publication and sug-

gestions for future editions.

You can send us comments through

IRS.gov/FormComments. Or, you can write to

the Internal Revenue Service, Tax Forms and

Publications, 1111 Constitution Ave. NW,

IR-6526, Washington, DC 20224.

Although we can’t respond individually to

each comment received, we do appreciate your

feedback and will consider your comments and

suggestions as we revise our tax forms, instruc-

tions, and publications. Don’t send tax

Department

of the

Treasury

Internal

Revenue

Service

Publication 561

(Rev. February 2024)

Cat. No. 15109Q

Determining

the Value of

Donated

Property

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questions, tax returns, or payments to the above

address.

Getting answers to your tax questions.

If you have a tax question not answered by this

publication or the How To Get Tax Help section

at the end of this publication, go to the IRS In-

teractive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the

search feature or viewing the categories listed.

Getting tax forms, instructions, and pub

lications. Go to IRS.gov/Forms to download

current and prior-year forms, instructions, and

publications.

Ordering tax forms, instructions, and

publications. Go to IRS.gov/OrderForms to or-

der current forms, instructions, and publica-

tions; call 800-829-3676 to order prior-year

forms and instructions. The IRS will process

your order for forms and publications as soon

as possible. Don’t resubmit requests you’ve al-

ready sent us. You can get forms and publica-

tions faster online.

Useful Items

You may want to see:

Publication

526 Charitable Contributions

Forms (and Instructions)

8282 Donee Information Return

8283 Noncash Charitable Contributions

8283-V Payment Voucher for Filing Fee

Under Section 170(f)(13)

See How To Get Tax Help near the end of this

publication for information about getting these

publications and forms.

What Is Fair Market

Value (FMV)?

To figure how much you may deduct for prop-

erty that you contribute, you must first deter-

mine its FMV on the date of the contribution.

This publication focuses the valuation of non-

cash property being contributed after January

1, 2019, to a charity that qualifies under section

170(c) for an income tax charitable contribution

deduction.

FMV. FMV is the price that property would sell

for on the open market. It is the price that would

be agreed on between a willing buyer and a will-

ing seller, with neither being required to act, and

both having reasonable knowledge of the rele-

vant facts. In addition to this general rule, there

are special rules used to value certain types of

property such as remainder interests, annuities,

interests for life or for a term of years, and rever-

sions, discussed below.

Example 1. If you give an item of used

clothing that is in good used condition or better

to the Salvation Army, the FMV would be the

price that typical buyers actually pay for clothing

of this age, condition, style, and use. Usually,

such items are worth far less than what you paid

for them.

526

8282

8283

8283-V

Example 2. If you donate land and restrict

its use to agricultural purposes, you must value

the land at its value for agricultural purposes,

even if it would have a higher FMV if it were not

restricted.

Factors. In making and supporting the val-

uation of property, all factors affecting value are

relevant and must be considered. These in-

clude, but are not limited to:

•

The cost or selling price of the item,

•

Sales of comparable properties,

•

Replacement cost, and

•

Opinions of professional appraisers.

These factors are discussed later. Also, see

Table 1 for a summary of questions to ask as

you consider each factor.

Date of contribution. Ordinarily, the date of a

contribution is the date on which the property is

delivered to the charity or the title transfer date,

provided you do not retain any right to or inter-

est in the property that would limit the charity's

use of the property.

Stock. If you deliver, without any condi-

tions, a properly endorsed stock certificate to a

qualified organization or to an agent of the or-

ganization, the date of the contribution is the

date of delivery. If the certificate is mailed and

received through the regular mail, it is the date

of mailing. If you deliver the certificate to a bank

or broker acting as your agent or to the issuing

corporation or its agent, for transfer into the

name of the organization, the date of the contri-

bution is the date the stock is transferred on the

books of the corporation.

Options. If you grant an option to a quali-

fied organization to buy real property, you have

not made a charitable contribution until the or-

ganization exercises the option. The amount of

the contribution is the FMV of the property on

the date the option is exercised minus the exer-

cise price.

Example. You grant an option to a local

university, which is a qualified organization, to

buy real property. Under the option, the univer-

sity could buy the property at any time during a

2-year period for $40,000. The FMV of the prop-

erty on the date the option is granted is

$50,000.

In the following tax year, the university exer-

cises the option. The FMV of the property on

the date the option is exercised is $55,000.

Therefore, you have made a charitable contribu-

tion of $15,000 ($55,000, the FMV, minus

$40,000, the exercise price) in the tax year the

option is exercised.

Determining FMV

Determining the value of donated property de-

pends upon many factors. You should consider

all the facts and circumstances connected with

the property, including any recent transactions,

in determining value. Value may also be based

on desirability, use, condition, scarcity, and mar-

ket demand for that property. Depending on the

type of property, there may be other characteris-

tics that are relevant in determining its value.

Cost or Selling Price of the

Donated Property

The cost of the property to you or the actual

selling price received by the qualified organiza-

tion may be the best indication of its FMV. How-

ever, because conditions in the market change,

the cost or selling price of property may have

less weight if the property was not bought or

sold at a time that is reasonably close to the

date of contribution.

The cost or selling price is a good indication

of the property's value if:

•

The purchase or sale took place close to

the valuation date in an open market,

•

The purchase or sale was at “arm's-length,”

•

The buyer and seller knew all relevant

facts,

•

The buyer and seller did not have to act,

and

•

The market did not change between the

date of purchase or sale and the valuation

date.

Example. Bailey Morgan, who is not a

dealer in gems, bought an assortment of gems

for $5,000 from a promoter. The promoter

claimed that the price was “wholesale” even

though this dealer and other dealers made simi-

lar sales at similar prices to other persons who

were not dealers. The promoter said that if Bai-

ley kept the gems for more than 1 year and then

gave them to charity, Bailey could claim a chari-

table deduction of $15,000, which, according to

the promoter, would be the value of the gems at

the time of contribution. Bailey gave the gems to

a qualified charity 13 months after buying them.

The selling price for these gems had not

changed from the date of purchase to the date

Bailey donated them to charity. The best evi-

dence of FMV depends on actual transactions

and not on some artificial estimate. The $5,000

paid by Bailey and others is, therefore, the best

evidence of the maximum FMV of the gems.

Terms of the purchase or sale. The terms of

the purchase or sale should be considered in

determining FMV if they influenced the price.

These terms include any restrictions, under-

standings, or covenants limiting the use or dis-

position of the property.

Rate of increase or decrease in value. Un-

less you can show that there were unusual cir-

cumstances, it is assumed that the increase or

decrease in the value of your donated property

from your cost has been at a reasonable rate.

For time adjustments, an appraiser may con-

sider published price indexes for information on

general price trends, building costs, commodity

costs, securities, and works of art sold at auc-

tion in arm's-length sales.

Example. Corey Brown bought a painting

for $10,000. Thirteen months later, Corey gave

it to an art museum, claiming a charitable de-

duction of $15,000 on their tax return. The ap-

praisal of the painting should include informa-

tion showing that there were unusual

circumstances that justify a 50% increase in

value for the 13 months Corey held the property.

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2 Publication 561 (2-2024)

Arm's-length offer. An arm's-length offer to

buy the property close to the valuation date may

help to prove its value if the person making the

offer was willing and able to complete the trans-

action. To rely on an offer, you should be able to

show proof of the offer and the specific amount

to be paid. Offers to buy property other than the

donated item will help to determine value if the

other property is reasonably similar to the dona-

ted property.

Sales of Comparable Properties

The sales prices of properties similar to the do-

nated property are often important in determin-

ing the FMV. The weight to be given to each

sale depends on the following.

•

The degree of similarity between the prop-

erty sold and the donated property.

•

The time of the sale—whether it was close

to the valuation date.

•

The circumstances of the sale—whether it

was at arm's-length with a knowledgeable

buyer and seller, with neither having to act.

•

The conditions of the market in which the

sale was made—whether unusually infla-

ted or deflated.

The comparable sales method of valuing real

estate is explained later under Valuation of Vari-

ous Kinds of Property.

Example 1. Quinn Black, who is not a book

dealer, paid a promoter $10,000 for 500 copies

of a single edition of a modern translation of a

religious book. The promoter had claimed that

the price was considerably less than the “retail”

price and gave Quinn a statement that the

books had a total retail value of $30,000. The

promoter advised that if Quinn kept the books

for more than 1 year and then gave them to a

qualified organization, Quinn could claim a

charitable deduction for the “retail” price of

$30,000. Thirteen months later, all the books

were given to a house of worship from a list pro-

vided by the promoter. At the time of the dona-

tion, wholesale dealers were selling similar

quantities of books to the general public for

$10,000.

The FMV of the books is $10,000, the price

at which similar quantities of books were being

sold to others at the time of the contribution.

Example 2. The facts are the same as in

Example 1, except that the promoter gave

Quinn Black a second option. The promoter

said that if Quinn wanted a charitable deduction

within 1 year of the purchase, Quinn could buy

the 500 books at the “retail” price of $30,000,

paying only $10,000 in cash and giving a prom-

issory note for the remaining $20,000. The prin-

cipal and interest on the note would not be due

for 12 years. According to the promoter, Quinn

could then, within 1 year of the purchase, give

the books to a qualified organization and claim

the full $30,000 retail price as a charitable con-

tribution. Quinn purchased the books under the

second option and, 3 months later, gave them

to a house of worship, which will use the books

for religious purposes.

At the time of the gift, the promoter was sell-

ing similar lots of books for either $10,000 or

$30,000. The difference between the two prices

was solely at the discretion of the buyer. The

promoter was a willing seller for $10,000.

Therefore, the value of Quinn’s contribution of

the books is $10,000, the amount at which simi-

lar lots of books could be purchased from the

promoter by members of the general public.

Replacement Cost

The cost of buying, building, or manufacturing

property similar to the donated item may be

considered in determining FMV. However, there

must be a reasonable relationship between the

replacement cost and the FMV.

The replacement cost is the amount it would

cost to replace the donated item on the valua-

tion date. Often, there is no relationship be-

tween the replacement cost and the FMV. If the

supply of the donated property is more or less

than the demand for it, the replacement cost be-

comes less important.

To determine the replacement cost of the

donated property, find the “estimated replace-

ment cost new.” Then subtract from this figure

an amount for depreciation due to the physical

condition and obsolescence of the donated

property. You should be able to show the rela-

tionship between the depreciated replacement

cost and the FMV, as well as how you arrived at

the “estimated replacement cost new.”

Opinions of Professional

Appraisers

Generally, the weight given to a professional ap-

praiser’s opinion on matters such as the authen-

ticity of a coin or a work of art, or the most profit-

able and best use of a piece of real estate,

depends on the knowledge and competence of

the professional appraiser and the thorough-

ness with which the opinion is supported by ex-

perience and facts. For a professional apprais-

er’s opinion to deserve much weight, the facts

must support the opinion. For additional infor-

mation, see Appraisal, later.

Problems in Determining

FMV

There are a number of problems in determining

the FMV of donated property.

Unusual Market Conditions

The sale price of the property itself in an

arm's-length transaction in an open market is

often the best evidence of its value. When you

rely on sales of comparable property, the sales

must have been made in an open market. If

those sales were made in a market that was ar-

tificially supported or stimulated so as not to be

truly representative, the prices at which the

sales were made will not indicate the FMV.

For example, liquidation sale prices usually

do not indicate the FMV. Also, sales of stock un-

der unusual circumstances, such as sales of

small lots, forced sales, and sales in a restricted

market, may not represent the FMV.

Selection of Comparable Sales

Using sales of comparable property is an impor-

tant method for determining the FMV of dona-

ted property. However, the amount of weight

given to a sale depends on the degree of simi-

larity between the comparable and the donated

properties. The degree of similarity must be

close enough so that this selling price would

have been given consideration by reasonably

well-informed buyers or sellers of the property.

Example. You give a rare, old book to your

former college. The book is a third edition and is

in poor condition because of a missing back

cover. You discover that there was a sale for

$300, near the valuation date, of a first edition of

the book that was in good condition. Although

the contents are the same, the books are not at

all similar because of the different editions and

their physical condition. Little consideration

would be given to the selling price of the $300

property by knowledgeable buyers or sellers.

Table 1. Factors That Affect FMV

IF the factor you are

considering is... THEN you should ask these questions...

cost or selling price Was the purchase or sale of the property reasonably close to the date of contribution?

Was any increase or decrease in value, as compared to your cost, at a reasonable

rate?

Do the terms of purchase or sale limit what can be done with the property?

Was there an arm's-length offer to buy the property close to the valuation date?

sales of comparable

properties

How similar is the property sold to the property donated?

How close is the date of sale to the valuation date?

Was the sale at arm's-length?

What was the condition of the market at the time of sale?

replacement cost What would it cost to replace the donated property?

Is there a reasonable relationship between replacement cost and FMV?

Is the supply of the donated property more or less than the demand for it?

opinions of professional

appraisers

Is the professional appraiser knowledgeable and competent?

Is the opinion thorough and supported by facts and experience?

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Publication 561 (2-2024) 3

Future Events

You may not consider unexpected events hap-

pening after your donation of property in making

the valuation. You may consider only the facts

known at the time of the gift, and those that

could reasonably be expected at the time of the

gift.

Example. You give farmland to a qualified

charity. The transfer provides that your mother

will have the right to all income and full use of

the property for her life. Even though your

mother dies 1 week after the transfer, the value

of the property on the date it is given is its

present value, subject to the life interest as esti-

mated from actuarial tables. You may not take a

higher deduction because the charity received

full use and possession of the land only 1 week

after the transfer.

Using Past Events To Predict the

Future

A common error is to rely too much on past

events that do not fairly reflect the probable fu-

ture earnings and FMV.

Example. You give all your rights in a suc-

cessful patent to your favorite charity. Your re-

cords show that before the valuation date there

were three stages in the patent's history of

earnings. First, there was rapid growth in earn-

ings when the invention was introduced. Then,

there was a period of high earnings when the in-

vention was being exploited. Finally, there was a

decline in earnings when competing inventions

were introduced. The entire history of earnings

may be relevant in estimating the future earn-

ings. However, the appraiser must not rely too

much on the stage of rapid growth in earnings

or of high earnings. The market conditions at

those times do not represent the condition of

the market at the valuation date. What is most

significant is the trend of decline in earnings up

to the valuation date. For more information

about donations of patents, see Patents, later.

Valuation of Various

Kinds of Property

This section contains information on determin-

ing the FMV of ordinary kinds of donated prop-

erty. For information on appraisals, see Ap-

praisal, later.

Household Items

The FMV of used household items is usually

much lower than the price paid when new.

Household items include furniture, furnishings,

electronics, appliances, linens, and similar

items. Household items do not include paint-

ings, antiques, objects of art, jewelry, gems, and

collections like stamp and coin collections.

Such used property may have little or no market

value because it may be out of style.

You cannot take an income tax charitable

contribution deduction for household items un-

less they are in good used condition or better.

The one exception to this is a household item

that is not in good used condition or better for

which you claim an income tax charitable contri-

bution deduction of more than $500. In this

case, you must obtain a qualified appraisal valu-

ing the item and complete a Form 8283. See

Deduction over $500 for certain clothing or

household items, later.

If the property is valuable because it is old or

unique, see Art and Collectibles, later.

Used Clothing

Used clothing and other personal items are usu-

ally worth far less than the price you paid for

them. Valuation of items of clothing does not

lend itself to fixed formulas or methods.

The price that buyers of used items actually

pay in used clothing stores, such as consign-

ment or thrift shops, is an indication of the

value.

You cannot take an income tax charitable

contribution deduction for an item of clothing

unless it is in good used condition or better. An

item of clothing that is not in good used condi-

tion or better for which you claim an income tax

charitable contribution deduction of more than

$500 requires a qualified appraisal and a com-

pleted Form 8283. See Deduction over $500 for

certain clothing or household items, later.

Art and Collectibles

Your income tax charitable contribution dona-

tion of art and collectibles, for which you claim a

deduction of more than $5,000 must be suppor-

ted by a qualified appraisal and a Form 8283.

See Qualified Appraisal, later.

Art valued at $20,000 or more. If you claim a

deduction of $20,000 or more for an income tax

charitable contribution donation of art, you must

attach the qualified appraisal for the art. A pho-

tograph of a size and quality fully showing the

object, preferably a high-resolution digital im-

age, must be provided if requested.

Art valued at $50,000 or more. If you donate

an item of art that has been appraised at

$50,000 or more, you can request a Statement

of Value for that item from the IRS. You must re-

quest the statement before filing the tax return

that reports the donation. Your request must in-

clude the following.

•

A copy of a qualified appraisal of the item.

See Qualified Appraisal, later.

•

A user fee of $7,500 for one to three items

and $400 for each additional item paid

through Pay.gov. A payment confirmation

will be provided to you through the Pay.gov

portal and you should submit the payment

confirmation with your Statement of Value

request.

•

A completed Form 8283, Section B.

•

The location of the IRS territory that has

examination responsibility for your return.

If your request lacks essential information, you

will be notified and given 30 days to provide the

missing information.

Send your request to:

Internal Revenue Service/Appeals

Attn: Art Appraisal Services

Request for Statement of Value

1111 Constitution Ave. NW, Room 3615

Washington, DC 20224–0002

Refunds. You can withdraw your request

for a Statement of Value at any time before it is

issued. However, the IRS will not refund the

user fee if you do.

If the IRS declines to issue a Statement of

Value in the interest of efficient tax administra-

tion, the IRS will refund the user fee.

Art. Because many kinds of art may be the

subject of a charitable donation, it is not possi-

ble to discuss all of the possible types in this

publication. Most common are paintings, sculp-

tures, watercolors, prints, drawings, ceramics,

antiques, decorative arts, textiles, carpets, sil-

ver, rare manuscripts, and historical memora-

bilia.

Authenticity. The professional appraiser

should use reasonable due diligence to deter-

mine or confirm the authenticity of a donated art

work. This due diligence may include verifying

whether the art work is included in the relevant

catalogue raisonné (a scholarly listing of all

known works by a specific artist), has an as-

signed foundation number when relevant, is in-

cluded in a comprehensive on-line archive, or

whether the art work has an accompanying cer-

tificate of authenticity from a recognized author-

ity or expert on the artist.

Physical condition. The physical condi-

tion and extent of restoration are both relevant

in determining the valuation of art and antiques.

These factors should be addressed in the ap-

praisal. An antique in damaged condition lack-

ing the "original brasses," may be worth much

less than a similar piece in excellent condition.

Collectibles. Because many kinds of collecti-

bles may be the subject of a charitable dona-

tion, it is not possible to discuss all of the possi-

ble types in this publication. Most common are

rare books, autographs, sports memorabilia,

dolls, manuscripts, stamps, coins, guns, gems,

jewelry, music and entertainment memorabilia,

comics, toys, and natural history items.

Reference material. Publications availa-

ble to help you determine the value of many

kinds of collections include catalogs, dealers'

price lists, and specialized hobby periodicals.

When using one of these price guides, you

must use the current edition at the date of con-

tribution.

These sources are not always reliable

indicators of FMV and should be sup-

ported by other evidence.

For example, a dealer may sell an item for

much less than is shown on a price list, particu-

larly after the item has remained unsold for a

long time. The price an item sold for in an auc-

tion may have been the result of a rigged sale or

a mere bidding duel. The appraiser must ana-

lyze the reference material, and recognize and

make adjustments for misleading entries. If you

are claiming an income tax charitable contribu-

tion deduction for the donation of a collection

CAUTION

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4 Publication 561 (2-2024)

valued at more than $5,000, you must obtain a

qualified appraisal and complete a Form 8283.

Gems and jewelry. Gems and jewelry are

of such a specialized nature that it is almost al-

ways necessary to get an appraisal by a speci-

alized jewelry appraiser. The appraisal should

describe, among other things, the style of the

jewelry, the cut and setting of the gem, and

whether it is now in fashion. The stone's color-

ing, weight, cut, brilliance, and flaws should be

reported and analyzed. Sentimental personal

value has no effect on FMV. But if the jewelry

was owned by a famous person, its value might

increase. GIA certificates and color photos

should be included in jewelry appraisals.

Stamp collections. Most libraries have

catalogs or other books that report the publish-

er's estimate of values. Generally, two price lev-

els are shown for each stamp: the price post-

marked and the price not postmarked. Contact

an appraiser for assistance with properly valu-

ing stamp collections.

Coin collections. Many catalogs and other

reference materials show the writer's or publish-

er's opinion of the value of coins on or near the

date of the publication. Like many other collec-

tors' items, the value of a coin depends on the

demand for it, its age, and its rarity. Another im-

portant factor is the coin's condition. For exam-

ple, there is a great difference in the value of a

coin that is in mint condition and a similar coin

that is only in good condition.

Use caution when consulting price guides

for coins as only a trained grader can distin-

guish the difference between various Mint State

grades and circulated grades including ex-

tremely fine, very fine, fine, very good, good,

fair, or poor. The difference in value between

one grade and another could be vast.

Books. The value of books is usually deter-

mined by selecting comparable sales and ad-

justing the prices according to the differences

between the comparable sales and the item be-

ing evaluated. This can be difficult to do and,

except for a collection of little value, should be

done by a specialized appraiser.

Modest value of collection. If the collec-

tion you are donating is of modest value, not re-

quiring a written appraisal, the following infor-

mation may help you in determining the FMV.

A book that is very old, or very rare, is not

necessarily valuable. There are many books

that are very old or rare, but that have little or no

market value.

Condition of book. The condition of a

book may have a great influence on its value.

Collectors are interested in items that are in

fine, or at least good, condition. When a book

has a missing page, a loose binding, tears, or

stains, or is otherwise in poor condition, its

value is greatly lowered.

Other factors. Some other factors in the

valuation of a book are the kind of binding

(leather, cloth, paper), page edges, and illustra-

tions (drawings and photographs). Collectors

usually want first editions of books. However,

because of changes or additions, other editions

are sometimes worth as much as, or more than,

the first edition.

Manuscripts, autographs, diaries, and

similar items. When these items are hand-

written, or at least signed by famous people,

they are often in demand and are valuable.

However, the noteworthiness of an author is not

the only determining factor; the writings of un-

known or obscure authors may also be of value

if they are of unusual historical or literary impor-

tance. Determining the value of such material is

difficult. For example, there may be a great dif-

ference in value between two diaries that were

kept by a famous person—one kept during

childhood and the other during a later period in

their life. The appraiser determines a value in

these cases by applying knowledge and judg-

ment to such factors as comparable sales and

market conditions.

Cars, Boats, and Aircraft

If you donate a car, a boat, or an aircraft to a

charitable organization, its FMV must be deter-

mined.

Certain commercial firms and trade organi-

zations publish monthly or seasonal guides for

different regions of the country, containing com-

plete dealer sale prices or dealer average pri-

ces for recent model years. Prices are reported

for each make, model, and year. These guides

also provide estimates for adjusting for unusual

equipment, unusual mileage, and physical con-

dition. The prices are not “official,” and these

publications are not considered an appraisal of

any specific donated property. But they do pro-

vide clues for making an appraisal and suggest

relative prices for comparison with current sales

and offerings in your area.

These publications are sometimes available

from public libraries or at a bank, credit union,

or finance company. You can also find pricing

information about used cars on the Internet.

An acceptable measure of the FMV of a do-

nated car, boat, or airplane is an amount not in

excess of the price listed in a used vehicle pric-

ing guide for a private party sale, not the dealer

retail value, of a similar vehicle. However, the

FMV may be less than that amount if the vehicle

has engine trouble, body damage, high mile-

age, or any type of excessive wear. The FMV of

a donated vehicle is the same as the price listed

in a used vehicle pricing guide for a private

party sale only if the guide lists a sales price for

a vehicle that is the same make, model, and

year, sold in the same area, in the same condi-

tion, with the same or similar options or acces-

sories, and with the same or similar warranties

as the donated vehicle.

Example. You donate a used car in poor

condition to a local high school for use by stu-

dents studying car repair. A used car guide

shows the dealer retail value for this type of car

in poor condition is $1,600. However, the guide

shows the price for a private party sale of the

car is only $750. The FMV of the car is consid-

ered to be no more than $750.

Boats. Except for inexpensive small boats, the

valuation of boats should be based on an ap-

praisal by a marine surveyor because the physi-

cal condition is so critical to the value.

More information. Your deduction for a dona-

ted car, boat, or airplane is generally limited to

the gross proceeds from its sale by the qualified

organization. This rule applies if the claimed

value of the donated vehicle is more than $500.

In certain cases, you can deduct the vehicle's

FMV. For details, see Pub. 526.

Inventory

If you donate any inventory item to a charitable

organization, the amount of your deductible

contribution is generally the FMV of the item,

minus any gain you would have realized if you

had sold the item at its FMV on the date of the

gift. For more information, see Pub. 526.

Patents

To determine the FMV of a patent, you must

take into account, among other factors:

•

Whether the patented technology has

been made obsolete by other technology;

•

Any restrictions on the donee's use of, or

ability to transfer, the patented technology;

and

•

The length of time remaining before the

patent expires.

However, your deduction for a donation of a

patent or other intellectual property is its FMV,

minus any gain you would have realized if you

had sold the property at its FMV on the date of

the gift. Generally, this means your deduction is

the lesser of the property's FMV or its basis. For

details, see Pub. 526.

Stocks and Bonds

The value of stocks and bonds is the FMV of a

share or bond on the valuation date. See Date

of contribution, earlier, under What Is Fair Mar-

ket Value (FMV)?

Selling prices on valuation date. If there is

an active public market for the contributed

stocks or bonds on a stock exchange, in an

over-the-counter market, or elsewhere, the FMV

of each share or bond is the average price be-

tween the highest and lowest quoted selling pri-

ces on the valuation date. For example, if the

highest selling price for a share was $11 and

the lowest $9, the average price is $10. You get

the average price by adding $11 and $9 and di-

viding the sum by 2.

No sales on valuation date. If there were

no sales on the valuation date, but there were

sales within a reasonable period before and af-

ter the valuation date, you determine FMV by

taking the average price between the highest

and lowest sales prices on the nearest date be-

fore and on the nearest date after the valuation

date. Then you weight these averages in in-

verse order by the respective number of trading

days between the selling dates and the valua-

tion date.

Example. On the day you gave stock to a

qualified organization, there were no sales of

the stock. Sales of the stock nearest the valua-

tion date took place 2 trading days before the

valuation date at an average selling price of $10

and 3 trading days after the valuation date at an

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Publication 561 (2-2024) 5

average selling price of $15. The FMV on the

valuation date was $12, figured as follows.

[(3 x $10) + (2 x $15)] ÷ 5 = $12

Listings on more than one stock ex

change. Stocks or bonds listed on more than

one stock exchange are valued based on the

prices of the exchange on which they are princi-

pally dealt. This applies if these prices are pub-

lished in a generally available listing or publica-

tion of general circulation. If this is not

applicable, and the stocks or bonds are repor-

ted on a composite listing of combined ex-

changes in a publication of general circulation,

use the composite list. See also Unavailable pri-

ces, later.

Bid and asked prices on valuation date. If

there were no sales within a reasonable period

before and after the valuation date, the FMV is

the average price between the bona fide bid

and asked prices on the valuation date.

Example. Although there were no sales of

Blue Corporation stock on the valuation date,

bona fide bid and asked prices were available

on that date of $14 and $16, respectively. The

FMV is $15, the average price between the bid

and asked prices.

No prices on valuation date. If there

were no prices available on the valuation date,

you determine FMV by taking the average pri-

ces between the bona fide bid and asked prices

on the closest trading date before and after the

valuation date. Both dates must be within a rea-

sonable period. Then you weight these aver-

ages in inverse order by the respective number

of trading days between the bid and asked

dates and the valuation date.

Example. On the day you gave stock to a

qualified organization, no prices were available.

Bona fide bid and asked prices 3 days before

the valuation date were $10 and 2 days after the

valuation date were $15. The FMV on the valua-

tion date is $13, figured as follows.

[(2 x $10)

+ (3 x $15)] ÷ 5 = $13

Prices only before or after valuation date,

but not both. If no selling prices or bona fide

bid and asked prices are available on a date

within a reasonable period before the valuation

date, but are available on a date within a rea-

sonable period after the valuation date, or vice

versa, then the average price between the high-

est and lowest of such available prices may be

treated as the value.

Large blocks of stock. When a large block of

stock is put on the market, it may lower the sell-

ing price of the stock if the supply is greater

than the demand. On the other hand, market

forces may exist that will afford higher prices for

large blocks of stock. Because of the many fac-

tors to be considered, determining the value of

large blocks of stock usually requires the help of

experts specializing in underwriting large quan-

tities of securities or in trading in the securities

of the industry of which the particular company

is a part.

Unavailable prices. If selling prices (or bid

and asked prices) are not available, you should

work with a professional appraiser to determine

the FMV of the bond or stock on the valuation

date because the analysis requires considera-

tion of factors similar to those used to value an

Interest in a Business below.

Restricted securities. Some classes of stock

cannot be traded publicly because of restric-

tions imposed by the Securities and Exchange

Commission, or by the corporate charter or a

trust agreement. These restricted securities

usually trade at a discount in relation to freely

traded securities.

You should work with a professional be-

cause the analysis requires consideration of

factors similar to those used to value an Interest

in a Business, below.

Real Estate

Because each piece of real estate is unique and

its valuation is complicated, a detailed appraisal

by a professional appraiser is necessary.

The appraiser must be thoroughly trained in

the application of appraisal principles and

theory. In some instances, the opinions of

equally qualified appraisers may carry unequal

weight, such as when one appraiser has a bet-

ter knowledge of local conditions.

The appraisal report must contain a com-

plete description of the property, such as street

address, legal description, and lot and block

number, as well as physical features, condition,

and dimensions. The use to which the property

is put, zoning and permitted uses, and its poten-

tial use for other higher and better uses are also

relevant.

In general, there are three main approaches

to the valuation of real estate. An appraisal may

require the combined use of two or three meth-

ods rather than one method only.

1. Comparable Sales

The comparable sales method compares the

donated property with several similar properties

that have been sold. The selling prices, after ad-

justments for differences in date of sale, size,

condition, and location, would then indicate the

estimated FMV of the donated property.

If the comparable sales method is used to

determine the value of unimproved real property

(land without significant buildings, structures, or

any other improvements that add to its value),

the appraiser should consider the following fac-

tors when comparing the potential comparable

property and the donated property.

•

Location, size, and zoning or use restric-

tions.

•

Accessibility and road frontage, and availa-

ble utilities and water rights.

•

Riparian rights (right of access to and use

of the water by owners of land on the bank

of a river) and existing easements,

rights-of-way, leases, etc.

•

Soil characteristics, vegetative cover, and

status of mineral rights.

•

Other factors affecting value.

For each comparable sale, the appraisal

must include the names of the buyer and seller,

the deed book and page number, the date of

sale and selling price, a property description,

the amount and terms of mortgages, property

surveys, the assessed value, the tax rate, and

the assessor's appraised FMV.

The comparable selling prices must be ad-

justed to account for differences between the

sale property and the donated property. Be-

cause differences of opinion may arise between

appraisers as to the degree of comparability

and the amount of the adjustment considered

necessary for comparison purposes, an ap-

praiser should document each item of adjust-

ment.

Only comparable sales having the least ad-

justments in terms of items and/or total dollar

adjustments should be considered as compara-

ble to the donated property.

2. Capitalization of Income

This method capitalizes the net income from the

property at a rate that represents a fair return on

the particular investment at the particular time,

considering the risks involved. The key ele-

ments are the determination of the income to be

capitalized and the rate of capitalization.

3. Replacement Cost New or

Reproduction Cost Minus

Observed Depreciation

This method, used alone, usually does not re-

sult in a determination of FMV. Instead, it gener-

ally tends to set the upper limit of value, particu-

larly in periods of rising costs, because it is

reasonable to assume that an informed buyer

will not pay more for the real estate than it would

cost to reproduce a similar property. Of course,

this reasoning does not apply if a similar prop-

erty cannot be created because of location, un-

usual construction, or some other reason. Gen-

erally, this method serves to support the value

determined from other methods. When the re-

placement cost method is applied to improved

realty, the land and improvements are valued

separately.

The replacement cost of a building is figured

by considering the materials, the quality of

workmanship, and the number of square feet or

cubic feet in the building. This cost represents

the total cost of labor and material, overhead,

and profit. After the replacement cost has been

figured, consideration must be given to the fol-

lowing factors.

•

Physical deterioration—the wear and tear

on the building itself.

•

Functional obsolescence—usually in older

buildings with, for example, inadequate

lighting, plumbing, or heating; small rooms;

or a poor floor plan.

•

Economic obsolescence—outside forces

causing the whole area to become less de-

sirable.

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6 Publication 561 (2-2024)

Interest in a Business

The FMV of any interest in a closely held busi-

ness (whether a sole proprietorship or a busi-

ness taxed as a corporation or partnership) is

the amount that a willing buyer would pay for the

interest to a willing seller after consideration of

all relevant factors. Because of the many factors

to be considered in determining the FMV of an

interest in a closely held business, the help of

experts is usually required. Such a determina-

tion requires the consideration of all available fi-

nancial data, as well as all relevant factors af-

fecting FMV. The following factors, although not

all-inclusive, may be helpful.

•

The business's net worth and prospective

earning power.

•

The nature and history of the business.

•

The economic outlook of the industry in

which the business operates.

•

The business's position in the industry, its

competitors, and its management.

•

The FMV of assets of the business includ-

ing goodwill, if applicable.

•

The value of interests in businesses en-

gaged in the same or similar industries.

You should keep complete financial and

other information on which the valuation is

based. This includes copies of reports of exami-

nations of the business made by accountants,

engineers, or any technical experts on or close

to the valuation date.

Annuities, Interests for Life

or Terms of Years,

Remainders, and Reversions

The FMV of these kinds of property is their

present value, except in the case of annuities

under contracts issued by companies regularly

engaged in their sale. The valuation of these

commercial annuity contracts and of insurance

policies is discussed later under Certain Life In-

surance and Annuity Contracts.

To determine present value, you must know

the applicable interest rate and use actuarial ta-

bles.

Interest rate. The applicable interest rate var-

ies. It is announced monthly in a news release

and published in the Internal Revenue Bulletin

as a Revenue Ruling. The interest rate to use is

under the heading “Rate Under Section 7520”

for a given month and year. For a transfer involv-

ing a charitable interest, you may elect to use

the interest rate for the month of the donation or

the interest rate for either of the 2 preceding

months. You must use the same interest rate to

determine the present value of all interests in

that property. You must attach a statement to

the return to take the election. You can call the

IRS office at 800-829-1040 to obtain this rate.

Actuarial tables. You need to refer to actua-

rial tables to determine the present value of a

charitable interest in the form of an annuity, any

interest for life or a term of years, or remainder

interest donated to a charitable organization.

Use the actuarial tables set forth by regula-

tion for these types of interests. These tables

are referenced by and explained in IRS Pub.

1457, Actuarial Valuations, Version 4A; Pub.

1458, Actuarial Valuations, Version 4B; and

Pub. 1459, Actuarial Valuations, Version 4C.

These publications provide examples showing

the use of actuarial factors and contain links to

the tables of factors to be used in determining

the present value of an annuity, an interest for

life or a term of years, or a remainder or rever-

sionary interest.

Pub. 1457 explains the use of actuarial fac-

tors for computing the present value of a re-

mainder interest in a charitable remainder annu-

ity trust and a pooled income fund, as well as

factors for annuities, life estates, term certain

estates, and other remainder interests. Pub.

1458 explains the use of the factors for valuing

the remainder interest in a charitable remainder

unitrust. Pub. 1459 explains the use of factors to

determine the present value of a remainder in-

terest in depreciable property. You can down-

load Pubs. 1457, 1458, and 1459 from https://

www.irs.gov/retirement-plans/actuarial-tables.

Formulas for actuarial factors for transfers to

pooled income funds may also be found in Reg-

ulations section 1.642(c)-6(e)(6), factors for

transfers to charitable remainder unitrusts in

Regulations section 1.664-4(e), and factors for

other transfers in Regulations section

20.2031-7(d)(6).

Note. The tables referenced by Versions

4A, 4B, and 4C of the publications are effective

for transfers on or after June 1, 2023. These ta-

bles use a more recent mortality basis than ear-

lier tables. The earlier versions of the publica-

tions, Versions 3A, 3B, and 3C, are also

available: these versions—and the actuarial ta-

bles they reference—are applicable for transfers

after April 30, 2009, and before June 1, 2023.

However, there is a transition rule under which

you may elect to use the later tables (those ref-

erenced in Versions 4A, 4B, and 4C) for valuing

interests transferred from May 1, 2019, through

June 1, 2023. However, you must be consistent

in using factors derived under the same mortal-

ity basis with respect to each interest (income,

remainder, annuity, etc.) in the same property,

and with respect to all transfers occurring on

that valuation date. All of these publications and

tables can be accessed from https://

www.irs.gov/retirement-plans/actuarial-tables.

Special factors. If you need a special factor

for an actual transaction, you can request a let-

ter ruling. Be sure to include the date of birth of

each person the duration of whose life may af-

fect the value of the interest. Also include cop-

ies of the relevant instruments. The IRS charges

a user fee for providing special factors.

For more information about requesting a rul-

ing, see Revenue Procedure 2024-1 (or annual

update).

For information on the circumstances under

which a charitable deduction may be allowed for

the donation of a partial interest in property not

in trust, see Partial Interest in Property Not in

Trust, later.

Certain Life Insurance and

Annuity Contracts

The value of an annuity contract or a life insur-

ance policy issued by a company regularly en-

gaged in the sale of such contracts or policies is

the amount that company would charge for a

comparable contract.

But if the donee of a life insurance policy

may reasonably be expected to cash the policy

rather than hold it as an investment, then the

FMV is the cash surrender value rather than the

replacement cost.

If an annuity is payable under a combination

annuity contract and life insurance policy (for

example, a retirement income policy with a

death benefit) and there was no insurance ele-

ment when it was transferred to the charity, the

policy is treated as an annuity contract.

Partial Interest in Property

Not in Trust

Generally, no deduction is allowed for a charita-

ble contribution, not made in trust, of less than

your entire interest in property. However, this

does not apply to a transfer of less than your

entire interest if it is a transfer of:

•

A remainder interest in your personal resi-

dence or farm,

•

An undivided part of your entire interest in

property, or

•

A qualified conservation contribution.

Remainder Interest in Real

Property

The amount of the deduction for a donation of a

remainder interest in real property is the FMV of

the remainder interest at the time of the contri-

bution, determined as the present value of that

remainder interest. To determine the present

value of the remainder interest, you must know

the FMV of the property as a whole (from which

the remainder interest is donated) on the date

of the contribution. Multiply the FMV of the

whole property by the appropriate remainder

factor. Examples in Pubs. 1457, 1458 and 1459

show how to use these factors and contain links

to these tables.

If the underlying property of which the re-

mainder interest being donated is depreciable

property, you must make an adjustment for de-

preciation or depletion using the factors in Table

C, as referenced by and explained in Pub. 1459,

Actuarial Valuations, Version 4C. See Annuities,

Interests for Life or Terms of Years, Remainders,

and Reversions, earlier. You can download Pub.

1459 from https://www.irs.gov/retirement-plans/

actuarial-tables.

For this purpose, the term “depreciable

property” means any property subject to wear

and tear or obsolescence, even if not used in a

trade or business or for the production of in-

come.

If the remainder interest is an interest in real

property that includes both depreciable and

nondepreciable elements, for example, a house

and land, the FMV of the underlying real prop-

erty must be allocated between each kind of

property at the time of the contribution. You

must use distinct actuarial factors that apply

separately to the depreciable portion and to the

nondepreciable portion, in order to determine

the present value of the entire remainder

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Publication 561 (2-2024) 7

interest. The example provided in Pub. 1459 ex-

plains how to get both kinds of remainder fac-

tors and apply them separately to the two ele-

ments of the underlying property value. The

sum of the present value of the remainder inter-

est in the nondepreciable element of the under-

lying property, plus the present value of the re-

mainder interest in the depreciable element of

the underlying property, is the present value of

the entire remainder interest in the property.

For more information, see Regulations sec-

tion 1.170A-12.

Undivided Part of Your Entire

Interest

A contribution of an undivided part of your entire

interest in property must consist of a part of

each and every substantial interest or right you

own in the property. It must extend over the en-

tire term of your interest in the property. For ex-

ample, you are entitled to the income from cer-

tain property for your life (life estate) and you

contribute 20% of that life estate to a qualified

organization. You can claim a deduction for the

contribution if you do not have any other interest

in the property.

If the only interest you own in real property is

a remainder interest in a personal residence or

farm and you give your entire remainder interest

to a qualifying charity under section 170(c), see

Annuities, Interests for Life or Terms of Years,

Remainders, and Reversions above, for infor-

mation on how to value that remainder interest.

Note. No income tax deduction is available

if you give part of your remainder interest in any

kind of property. See Partial Interest in Property

Not in Trust, above.

Qualified Conservation

Contribution

A qualified conservation contribution is a contri-

bution of a qualified real property interest to a

qualified organization to be used only for con-

servation purposes as defined in section 170(h)

(4).

Qualified organization. For purposes of a

qualified conservation contribution, a qualified

organization is:

•

A governmental unit;

•

A publicly supported charitable, religious,

scientific, literary, educational, etc., organi-

zation; or

•

An organization that is controlled by, and

operated for the exclusive benefit of, a gov-

ernmental unit or a publicly supported

charity.

The organization must also have a commitment

to protect the conservation purposes of the don-

ation and must have the resources to enforce

the restrictions.

Note. A qualified organization is a certain

group of charities than a charity that qualifies

under section 170(c) for an income tax charita-

ble deduction.

Conservation purposes. Your contribution

must be made only for one of the following con-

servation purposes.

•

Preserving land areas for outdoor recrea-

tion by, or for the education of, the general

public.

•

Protecting a relatively natural habitat of

fish, wildlife, or plants, or a similar ecosys-

tem.

•

Preserving open space, including farmland

and forest land, if it yields a significant pub-

lic benefit. It must be either for the scenic

enjoyment of the general public or under a

clearly defined federal, state, or local gov-

ernmental conservation policy.

•

Preserving a historically important land

area or a certified historic structure. There

must be some visual public access to the

property. Factors used in determining the

type and amount of public access required

include the historical significance of the

property, the remoteness or accessibility of

the site, and the extent to which intrusions

on the privacy of individuals living on the

property would be unreasonable.

Certified historic structures. A certified his-

toric structure is a building that is listed individu-

ally in the National Register of Historic Places

(National Register building), or a building that is

located in a registered historic district and has

been certified by the Secretary of the Interior as

contributing to the historic significance of that

district (historically significant building). If the in-

dividual listing in the National Register of His-

toric Places consists of a more than one build-

ing (for example, a house, a garage, a mill

complex, etc.) the Secretary of the Interior may

have to certify which of the multiple buildings

qualify as certified historic structures.

A registered historic district is any district lis-

ted in the National Register of Historic Places. A

state or local historic district may also qualify as

a registered historic district if the district and the

enabling statutes are certified by the Secretary

of the Interior. You can claim a deduction for a

qualified conservation contribution of a National

form of a qualified real property interest that is

an easement or other restriction on all or part of

the exterior or interior of the building.

You can claim a deduction for a qualified

conservation contribution of a historically signifi-

cant building. This can take the form of a contri-

bution of a qualified real property interest that is

an easement or other restriction on all or part of

the interior of the building. However, you cannot

claim a deduction for a contribution of a quali-

fied real property interest that is an easement or

other restriction on the exterior of a building un-

less the easement or other restriction meets

each of the following three conditions.

1. The restriction must preserve the entire

exterior of the building and must prohibit

any change to the exterior of the building

(including its front , sides, rear, and height)

that is inconsistent with its historical char-

acter.

2. You and the organization receiving the

contribution must enter into a written

agreement certifying, under penalty of per-

jury, that the organization:

a. Is a qualified organization with a pur-

pose of environmental protection,

land conservation, open space pres-

ervation, or historic preservation; and

b. Has the resources to manage and en-

force the restriction and a commit-

ment to do so.

3. You must include with your return:

a. Form 8283, completed as specified in

the instructions to Form 8283;

b. A signed qualified appraisal, per-

formed by a qualified appraiser;

c. Photographs of the building's entire

exterior;

d. A description of all restrictions on de-

velopment of the building, such as

zoning laws and restrictive covenants;

and

e. The National Park Service project

number (NPS #), if applicable. See

the Form 8283 instructions for more

information.

If you claim a deduction of more than

$10,000 for an easement or other restriction on

the exterior of a historically significant building,

your deduction will not be allowed unless you

pay a $500 filing fee. See Form 8283-V and its

instructions.

If you claimed the rehabilitation credit for a

National Register or historically significant build-

ing for any of the 5 years before the year of the

qualified conservation contribution, your chari-

table deduction is reduced. For more informa-

tion, see Form 3468, Investment Credit, and

section 170(f)(14).

Qualified real property interest. This is any

of the following interests in real property.

1. Your entire interest in real estate other

than a mineral interest (subsurface oil,

gas, or other minerals, and the right of ac-

cess to these minerals).

2. A remainder interest.

3. A restriction (granted in perpetuity) on the

use that may be made of the real property;

also commonly known as an easement, a

restrictive covenant, an equitable servi-

tude, or a perpetual conservation restric-

tion, depending upon terminology applica-

ble where the real property is located. See

Regulations section 1.170A-14(b)(2) for

further information.

Valuation. A qualified real property interest

described in (1) consists of the following.

•

Your entire interest in real property with you

retaining a qualified mineral interest, or

your entire interest in the real property

when someone else owns the qualified

mineral interest and the probability of sur-

face mining occurring is so remote as to be

negligible. A qualified mineral interest

gives you the right to access subsurface

oil, gas, or other minerals. You determine

the FMV of the real property absent the

qualified mineral interest in the same man-

ner that you determine the FMV of real es-

tate. See Real Estate, earlier.

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8 Publication 561 (2-2024)

•

A remainder interest in real property. You

determine the FMV of a remainder interest

in real property as directed earlier under

Remainder Interest in Real Property.

•

A conservation restriction (granted in per-

petuity) on the use which may be made of

real property.

The value of the charitable contribution of a

perpetual conservation restriction (conservation

easement) is the FMV of the easement at the

time of the contribution. In determining the FMV

of a conservation easement, if there is a sub-

stantial record of arm's-length sales of conser-

vation easements on other properties that are

the same as or very similar to the donated con-

servation easement, you must take into account

the selling price of these easements. If there are

no comparable sales, the FMV of the conserva-

tion easement is generally determined indirectly

as the difference between the FMVs of the

property before and after the grant of the con-

servation easement. The FMV of the property

before the grant of the conservation easement

must take into account not only the current use

of the property but also an objective assess-

ment of how immediate or remote the likelihood

is that the property, without the easement,

would be developed. In determining whether

the property could be developed, you must also

consider any zoning, conservation, or historical

preservation laws that would already restrict the

property's potential highest and best use.

Finally, if a potential highest and best use is

being considered that would require a change

in zoning or other restrictions on the property,

you must address whether it is reasonably prob-

able that such a change would be permitted.

Granting a conservation easement may in-

crease, rather than reduce, the value of prop-

erty, and in such a situation no deduction would

be allowed.

Example. You own 10 acres of farmland.

Similar land in the area has an FMV of $2,000

an acre. However, land in the general area that

is restricted solely to farm use has an FMV of

$1,500 an acre. Your county wants to preserve

open space and prevent further development in

your area.

You grant to the county an enforceable open

space easement in perpetuity on 8 of the 10

acres, restricting its use to farmland. The value

of this easement is $4,000, determined as fol-

lows.

FMV of the property before

granting easement:

$2,000 × 10 acres ................ $20,000

FMV of the property after

granting easement:

$1,500 × 8 acres ......... $12,000

$2,000 × 2 acres ......... 4,000 16,000

Value of easement .......... $4,000

If you later transfer in fee your remaining in-

terest in the 8 acres to another qualified organi-

zation, the FMV of your remaining interest is the

FMV of the 8 acres reduced by the FMV of the

easement granted to the first organization.

Disallowance of deductions for certain con-

servation contributions by pass-through

entities. Subject to three exceptions, if the

amount of the pass-through entity’s contribution

of qualified real property interest exceeds 2.5

times the sum of each member’s relevant basis

in such pass-through entity, each member of

such pass-through entity cannot claim a deduc-

tion for the charitable conservation contribution.

For the purpose of this disallowance rule,

the pass-through entity must calculate the sum

of the relevant basis of all members of the

pass-through entity and report it on the Form

8283. Relevant basis is, with respect to any

member, the portion of the member’s modified

basis in its interest in the pass-through entity

that is allocable to the portion of the real prop-

erty with respect to which the qualified conser-

vation contribution is made. Modified basis, with

respect to any member, is the adjusted basis in

the member’s interest in the pass-through entity

as determined (I) immediately before the con-

servation contribution, (II) without regard to the

member’s share of any liabilities of the

pass-through entity, and (III) by the entity after

taking into account the adjustments described

in subclauses (I) and (II). The pass-through en-

tity must determine such member's modified

basis.

More information. For more information

about qualified conservation contributions, see

Pub. 526.

Substantiation of

Noncash Charitable

Contributions

What you need to substantiate your deduction

depends upon the property being donated and

the claimed value of this property. There are

three types of documents that may be required

in order to substantiate your contribution.

•

Contemporaneous Written Acknowledg-

ment (CWA).

•

Form 8283.

•

An appraisal, which in some cases must

be a “qualified appraisal,” completed by a

“qualified appraiser.”

CWA. You must get a CWA from the charity to

which you contributed property on or before the

earlier of the date on which you file a return re-

porting the donation or the due date (including

extensions) for filing such return.

CWA must include the following:

1. The name of the organization;

2. The amount of any monetary contribution;

3. A description (but not the FMV) of any

contribution of property;

4. A statement that no goods or services

were provided by the organization in return

for the contribution, if that was the case;

5. If the organization did provide goods or

services in return for the contribution, a

description and good faith estimate of the

FMV of the goods or services; and

6. If the organization only provided intangible

religious benefits (described later in this

publication) in return for the contribution, a

statement so providing.

See Pub. 1771 for examples of CWAs.

Form 8283. You must file a Form 8283 if the

amount of your deduction for each noncash

contribution is more than $500, and when you

donate certain publicly traded securities for

which market quotations are readily available;

certain intellectual property, like a patent; a ve-

hicle for which you obtained a CWA meeting the

requirements of section 170(f)(12)(B) (including

a car, boat, or airplane) for which your deduc-

tion is limited to the gross proceeds from its

sale; and inventory and other similar property

described in section 1221(a)(1). You must also

file a Form 8283 if you have a group of similar

items for which a total deduction of over $500 is

claimed. See Form 8283 below.

Similar items of property are items of the

same general category or type, such as coin

collections, paintings, books, clothing, jewelry,

nonpublicly traded stock, land, or buildings.

Example. You claimed a deduction of $600

for inventory, $7,000 for publicly traded securi-

ties (quotations published daily), and $6,000 for

a collection of 15 books ($400 each).

Appraisal. Many, but not all, charitable contri-

butions require a qualified appraisal completed

by a qualified appraiser. See Qualified Ap-

praiser and Qualified Appraisal, later.

A qualified appraisal is not required for the

donation of:

•

Certain publicly traded securities for which

market quotations are readily available;

•

Certain intellectual property, like a patent;

•

A vehicle for which you obtained a CWA

meeting the requirements of section 170(f)

(12)(B) (including a car, boat, or airplane)

for which your deduction is limited to the

gross proceeds from its sale;

•

Inventory and other similar property descri-

bed in section 1221(a)(1); and

•

Noncash property valued at less than

$5,000 unless the property is an item of

clothing or a household item that is not in

good used condition for which you are

claiming a value of more than $500.

The appraiser's opinion is never more valid

than the facts on which it is based; without

these facts, it is simply a guess.

Even when a qualified appraisal by a quali-

fied appraiser is not required, you must support

the value you claim for the property you contrib-

ute to charity. For property like publicly traded

securities for which market quotations are read-

ily available, you may not need an appraisal by

an appraiser. When you need an appraisal by

an appraiser to support the value of your deduc-

tion, more weight is given to an appraisal by an

appraiser that satisfies most of the require-

ments of a qualified appraisal by a qualified ap-

praiser.

Cost of appraisals. You may not take a chari-

table contribution deduction for fees you pay for

appraisals of your donated property.

Donation less than $5,000. If you give prop-

erty worth less than $250 to charity, you should

obtain a receipt from the charity. The receipt

should include the charity's name and address,

and the date you made the gift. If you give prop-

erty worth between $250 and $5,000, you must

obtain a CWA. You must also substantiate the

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Publication 561 (2-2024) 9

FMV you claim for the property. You may need

to file a Form 8283.

Deduction over $500 for certain clothing or

household items. You must include with your

return a qualified appraisal prepared by a quali-

fied appraiser of any single item of clothing or

any household item that is not in good used

condition or better, and for which you deduct

more than $500. Attach the appraisal and Form

8283. See Household Items and Used Clothing,

earlier. You must also obtain a CWA for this

donation.

Deductions of More Than

$5,000

Generally, if the claimed deduction for an item

or group of similar items of donated property is

more than $5,000, and was made after Decem-

ber 31, 1984, you must:

•

Obtain a qualified appraisal signed and

dated by a qualified appraiser, and

•

Complete and attach Form 8283 to your

tax return.

There are exceptions, discussed later. You

should keep the appraiser's report with your

written records. Records are discussed in Pub.

526. You must also obtain a CWA for this dona-

tion.

The phrase “similar items” means property

of the same generic category or type (whether

or not donated to the same donee), such as

stamps, coins, fine art, books, nonpublicly tra-

ded stock, nonpublicly traded securities other

than nonpublicly traded stock, land, buildings,

clothing, jewelry, furniture, household goods,

collectibles, or decorative arts. For example, if

you give books to three schools and you deduct

$2,000, $2,500, and $900, respectively, your

claimed deduction is more than $5,000 for

these books. You must get a qualified appraisal

of the books and for each school you must at-

tach a fully completed Form 8283, Section B, to

your tax return.

Publicly traded securities. Publicly traded

securities are:

•

Listed on a stock exchange in which quota-

tions are published on a daily basis,

•

Regularly traded in a national or regional

over-the-counter market for which pub-

lished quotations are available, or

•

Shares of an open-end investment com-

pany (mutual fund) for which quotations

are published on a daily basis in a newspa-

per of general circulation throughout the

United States.

•

The issue is regularly traded during the

computation period (defined later) in a

market for which there is an “interdealer

quotation system” (defined later);

•

The issuer or agent computes the “average

trading price” (defined later) for the same

issue for the computation period;

•

The average trading price and total volume

of the issue during the computation period

are published in a newspaper of general

circulation throughout the United States;

not later than the last day of the month fol-

lowing the end of the calendar quarter in

which the computation period ends;

•

The issuer or agent keeps books and re-

cords that list for each transaction during

the computation period the date of settle-

ment of the transaction, the name and ad-

dress of the broker or dealer making the

market in which the transaction occurred,

and the trading price and volume; and

•

The issuer or agent permits the IRS to re-

view the books and records described in

the above bullet point with respect to trans-

actions during the computation period

upon receiving reasonable notice.

An interdealer quotation system is any sys-

tem of general circulation to brokers and deal-

ers that regularly disseminates quotations of

obligations by two or more identified brokers or

dealers who are not related to either the issuer

or agent who computes the average trading

price of the security. A quotation sheet prepared

and distributed by a broker or dealer in the reg-

ular course of business and containing only

quotations of that broker or dealer is not an in-

terdealer quotation system.

The average trading price is the average

price of all transactions (weighted by volume),

other than original issue or redemption transac-

tions, conducted through a U.S. office of a

broker or dealer who maintains a market in the

issue of the security during the computation pe-

riod. Bid and asked quotations are not taken

into account.

The computation period is weekly during

October through December and monthly during

January through September. The weekly com-

putation periods during October through De-

cember begin with the first Monday in October

and end with the first Sunday following the last

Monday in December.

Deductions of More Than

$500,000

If you claim a deduction of more than $500,000

for a donation of property, you must attach a

qualified appraisal of the property to your return.

This does not apply to contributions of cash, in-

ventory, publicly traded stock, or intellectual

property.

If you do not obtain a qualified appraisal

and/or attach the appraisal to your return, if re-

quired, you cannot deduct your contribution, un-

less your failure to attach the appraisal is due to

reasonable cause and not to willful neglect.

Qualified Appraisal

A qualified appraisal is an appraisal document

that meets the following requirements.

•

Is made, signed, and dated by a qualified

appraiser (defined later) in accordance

with the substance and principles of the

Uniform Standards of Professional Ap-

praisal Practice.

•

Meets the relevant requirements of Regu-

lations section 1.170A-17(a) and (b).

•

Is signed by the qualified appraiser and

dated no earlier than 60 days before the

date of the contribution and no later than

the due date, including extensions, of the

return on which the deduction for the con-

tribution is first claimed. For an appraisal

report dated before the date of the contri-

bution, the valuation effective date must be

no earlier than 60 days before the date of

the contribution and no later than the date

of the contribution. For an appraisal report

dated on or after the date of the contribu-

tion, the valuation effective date must be

the date of the contribution.

•

Does not involve a prohibited appraisal fee.

You must receive the qualified appraisal be-

fore the due date, including extensions, of the

return on which a charitable contribution deduc-

tion is first claimed for the donated property. If

the deduction is first claimed on an amended

return, the qualified appraisal must be received

before the date on which the amended return is

filed. An appraisal is not a qualified appraisal if

you fail to disclose or you misrepresent facts to

your appraiser and a reasonable person would

expect this failure or misrepresentation to cause

the appraiser to misstate the value of the prop-

erty you contributed.

Form 8283 must be completed and attached

to your tax return. Generally, you do not need to

attach the qualified appraisal itself, but you

should keep a copy as long as it may be rele-

vant under the tax law. There are four excep-

tions.

•

If you claim a deduction of $20,000 or

more for donations of art, you should at-

tach a complete copy of the appraisal. See

Art and Collectibles, earlier.

•

If you claim a deduction of more than

$500,000 for a donation of property, you

must attach the appraisal. See Deductions

of More Than $500,000, earlier.

•

If you claim a deduction of more than $500

for an article of clothing, or a household

item, that is not in good used condition or

better, you must attach the appraisal. See

Deduction over $500 for certain clothing or

household items, earlier.

•

If you claim a deduction for an easement or

other restriction on the exterior of a build-

ing in a historic district, you must attach the

appraisal. See Certified historic structures,

earlier.

Prohibited appraisal fee. Generally, no part

of the fee arrangement for a qualified appraisal

can be based on a percentage of the appraised

value of the property. If a fee arrangement is

based on what is allowed as a deduction, after

IRS examination or otherwise, it is treated as a

fee based on a percentage of appraised value.

Information included in qualified appraisal.

A qualified appraisal must include the following

information.

1. A description of the property in sufficient

detail for a person who is not generally fa-

miliar with the type of property to deter-

mine that the property appraised is the

property that was (or will be) contributed.

2. The physical condition of any tangible per-

sonal property or real property.

3. The date (or expected date) of contribu-

tion (valuation effective date).

4. The terms of any agreement or under-

standing entered into (or expected to be

entered into) by or on behalf of the donor

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10 Publication 561 (2-2024)

and donee that relates to the use, sale, or

other disposition of the donated property,

including, for example, the terms of any

agreement or understanding that:

a. Temporarily or permanently restricts a

donee's right to use or dispose of the

donated property;

b. Earmarks donated property for a par-

ticular use; or

c. Reserves to, or confers upon, anyone

(other than a donee organization or an

organization participating with a do-

nee organization in cooperative fund-

raising) any right to the income from

the donated property or to the pos-

session of the property, including the

right to vote donated securities, to ac-

quire the property by purchase or oth-

erwise, or to designate the person

having the income, possession, or

right to acquire the property.

5. The name, address, and taxpayer identifi-

cation number (TIN) of the qualified ap-

praiser and, if the appraiser is a partner,

an employee, or an independent contrac-

tor engaged by a person other than the

donor, the name, address, and taxpayer

identification number of the partnership or

the person who employs or engages the

appraiser.

6. The qualifications of the qualified ap-

praiser who signs the appraisal to value

the type of property being valued, includ-

ing the appraiser's background, experi-

ence, education, and any membership in

professional appraisal associations.

7. A statement that the appraisal was pre-

pared for income tax purposes.

8. The declaration required by Regulations

section 1.170A-17(3)(iv).

9. The appraised FMV on the date (or expec-

ted date) of contribution.

10.

The method of valuation used to deter-

mine FMV, such as the sales comparison

approach, cost approach, or income ap-

proach.

11.

The specific basis for the valuation, such

as any specific comparable sales transac-

tion.

12.

The report completion date.

Art objects. The following are examples of

information that should be included in a descrip-

tion of donated art objects. Appraisals of art ob-

jects—paintings in particular—should include

all of the following.

1. A complete description of the object, indi-

cating the:

a. Dimensions;

b. Subject matter;

c. Medium and support;

d. Name of the artist (or culture);

e. Approximate date created; and

f. Condition, including a condition report

by a professional conservator if

condition affects value.

2. The cost, date, and manner of acquisition.

3. A history of the item's prior ownership

(provenance).

4. The exhibition history of the object.

5. Authenticity documentation. Reasonable

due diligence should include catalogue

raisonné citations, foundation numbers,

and/or letters from a recognized expert,

when warranted.

6. A professional quality color image of the

item.

7. The facts on which the appraisal was

based, such as:

a. Identification and analysis of the

item's value characteristics;

b. Comparable sales of similar works by

the artist which were sold in a time pe-

riod close to the valuation date;

c. The economic state of the art market

at the time of valuation, particularly

with respect to the specific property;

and

d. The standing of the artist in their pro-

fession and in the particular artistic

school or time period.

Number of qualified appraisals. A sepa-

rate qualified appraisal is required for each item

of property that is not included in a group of

similar items of property. You need only one

qualified appraisal for a group of similar items of

property contributed in the same tax year, but

you may get separate appraisals for each item.

A qualified appraisal for a group of similar items

must provide all of the required information for

each item of similar property. The appraiser,

however, may provide a group description for

selected items the total value of which is not

more than $100.

Qualified appraiser. A qualified appraiser is

an individual with verifiable education and expe-

rience in valuing the type of property for which

the appraisal is performed.

1. The individual:

a. Has earned an appraisal designation

from a generally recognized profes-

sional appraiser organization, for the

type of property being valued; or

b. Has met certain minimum education

requirements and 2 or more years of

experience in valuing the type of prop-

erty being valued. To meet the mini-

mum education requirement, the indi-

vidual must have successfully

completed professional or col-

lege-level coursework obtained from:

i. A professional or college-level

educational organization,

ii. A professional trade or appraiser

organization that regularly offers

educational programs in valuing

the type of property, or

iii. An employer as part of an em-

ployee apprenticeship or educa-

tion program similar to professio-

nal or college-level courses.

2. The individual regularly prepares apprais-

als for which they are paid.

3. The individual is not an excluded individ-

ual (defined later).

In addition, the appraiser must make a dec-

laration in the appraisal that, because of their

background, experience, education, and mem-

bership in professional associations, they are

qualified to make appraisals of the type of prop-

erty being valued. The appraiser must complete

the Declaration of Appraiser section on Form

8283, Section B. More than one appraiser may

appraise the property, provided that each com-

plies with the requirements, including signing

the qualified appraisal and the Declaration of

Appraiser section on Form 8283, Section B.

Excluded individuals. The following indi-

viduals cannot be qualified appraisers for the

donated property.

1. The donor of the property or the taxpayer

who claims the deduction.

2. The donee of the property.

3. A party to the transaction in which the do-

nor acquired the property being appraised,

unless the property is donated within 2

months of the date of acquisition and its

appraised value is not more than its ac-

quisition price. This applies to the person

who sold, exchanged, or gave the property

to the donor, or any person who acted as

an agent for the transferor or donor in the

transaction.

4. Any person employed by any of the above

persons. For example, if the donor ac-

quired a painting from an art dealer, nei-

ther the dealer nor persons employed by

the dealer can be qualified appraisers for

that painting.

5. Any person related under section 267(b)

of the Internal Revenue Code to any of the

above persons or married to a person rela-

ted under section 267(b) to any of the

above persons.

6. An appraiser who appraises regularly for a

person in (1), (2), or (3), and who does not

perform a majority of their appraisals

made during their tax year for other per-

sons.

7. An individual who receives a prohibited

appraisal fee for the appraisal of the dona-

ted property. See Prohibited appraisal fee,

earlier.

8. An individual who is prohibited from prac-

ticing before the IRS under section 330(c)

of title 31 of the United States Code at any

time during the 3-year period ending on

the date the appraisal is signed by the in-

dividual.

In addition, an individual is not a qualified

appraiser for a particular donation if the donor

had knowledge of facts that would cause a rea-

sonable person to expect the appraiser to

falsely overstate the value of the donated prop-

erty. For example, if the donor and the appraiser

make an agreement concerning the amount at

which the property will be valued, and the donor

knows that amount is more than the FMV of the

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Publication 561 (2-2024) 11

property, the appraiser is not a qualified ap-

praiser for the donation.

Appraiser penalties. An appraiser who

prepares an incorrect appraisal may have to pay

a penalty if the appraiser knows, or reasonably

should have known, the appraisal would be

used in connection with a return or claim for re-

fund, and the appraisal resulted in:

1. A substantial valuation misstatement,

2. A substantial estate or gift valuation under-

statement, or

3. A gross valuation misstatement.

The penalty imposed on the appraiser is the

smaller of:

1. The greater of:

a. 10% of the underpayment due to the

misstatement, or

b. $1,000; or

2. 125% of the gross income received for the

appraisal.

No penalty is imposed if the appraiser can

establish that the appraisal’s value is more likely

than not correct.

In addition, any appraiser who falsely or

fraudulently overstates the value of property de-

scribed in a qualified appraisal of a Form 8283

that the appraiser has signed may be subject to

a civil penalty for aiding and abetting as under-

statement of tax liability, and may have their ap-

praisal disregarded.

Form 8283

Generally, if the claimed deduction for an item

of donated property is more than $5,000, you

must attach Form 8283 to your tax return and

complete Section B.

If you do not attach Form 8283 to your return

and complete Section B, the deduction will not

be allowed unless your failure was due to rea-

sonable cause and not willful neglect, or was

due to a good faith omission.

You must attach a separate Form 8283 for

each item of contributed property that is not part

of a group of similar items. If you contribute sim-

ilar items of property to the same donee organi-

zation, you need attach only one Form 8283 for

those items. If you contribute similar items of

property to more than one donee organization,

you must attach a separate form for each do-

nee.

IRS Review of Appraisals

In reviewing an income tax return, the IRS may

accept the claimed value of the donated prop-

erty, based on information or appraisals sent

with the return, or may make its own determina-

tion of FMV. In either case, the IRS may:

•

Contact the taxpayer to get more informa-

tion;

•

Refer any valuation issues to an IRS ap-

praiser or valuation specialist;

•

Refer the issue to Art Appraisal Services

(AAS), a department of professional ap-

praisers who consults with the

Commissioner's Art Advisory Panel, a

group of independent dealers and cura-

tors. A referral to AAS is mandatory for fine

and decorative art valued at $50,000 or

more; or

•

Contract with an independent appraiser to

appraise the property when the objects re-

quire appraisers of highly specialized ex-

perience and knowledge.

Responsibility of the IRS. The IRS is respon-

sible for reviewing appraisals, but it is not re-

sponsible for making them. Supporting the FMV

listed on your return is your responsibility.

The IRS does not accept appraisals without

question. The IRS does not recognize any

particular appraiser or organization of apprais-

ers.

Timing of IRS action. The IRS generally does

not approve valuations or appraisals before the

actual filing of the tax return to which the ap-

praisal applies. In addition, the IRS generally

does not issue advance rulings approving or

disapproving such appraisals.

Exception. For a request submitted as de-

scribed earlier under Art valued at $50,000 or

more, the IRS will issue a Statement of Value

that can be relied on by the donor of the item of

art.

The Statement of Value is a fee-based re-

view of the taxpayer's appraisal and claimed

value. It does not guarantee a taxpayer's entitle-

ment to a deduction nor does it substitute for

the substantiation documents, such as the CWA

or Form 8283.

Penalty

You may be liable for a penalty if you misstate

the value or adjusted basis of donated property.

20% penalty. The penalty is 20% of the un-

derpayment of tax related to the misstatement

if:

•

The value or adjusted basis claimed on the

return is 150% or more of the correct

amount, and

•

You underpaid your tax by more than

$5,000 because of the misstatement.

40% penalty. The penalty is 40%, rather than

20%, if:

•

The value or adjusted basis claimed on the

return is 200% or more of the correct

amount, and

•

You underpaid your tax by more than

$5,000 because of the misstatement.

How To Get Tax Help

If you have questions about a tax issue; need

help preparing your tax return; or want to down-

load free publications, forms, or instructions, go

to IRS.gov to find resources that can help you

right away.

Preparing and filing your tax return. After

receiving all your wage and earnings state-

ments (Forms W-2, W-2G, 1099-R, 1099-MISC,

1099-NEC, etc.); unemployment compensation

statements (by mail or in a digital format) or

other government payment statements (Form

1099-G); and interest, dividend, and retirement

statements from banks and investment firms

(Forms 1099), you have several options to

choose from to prepare and file your tax return.

You can prepare the tax return yourself, see if

you qualify for free tax preparation, or hire a tax

professional to prepare your return.

Free options for tax preparation. Your op-

tions for preparing and filing your return online

or in your local community, if you qualify, include

the following.

•

Free File. This program lets you prepare

and file your federal individual income tax

return for free using software or Free File

Fillable Forms. However, state tax prepara-

tion may not be available through Free File.

Go to IRS.gov/FreeFile to see if you qualify

for free online federal tax preparation, e-fil-

ing, and direct deposit or payment options.

•

VITA. The Volunteer Income Tax Assis-

tance (VITA) program offers free tax help to

people with low-to-moderate incomes, per-

sons with disabilities, and limited-Eng-

lish-speaking taxpayers who need help

preparing their own tax returns. Go to

IRS.gov/VITA, download the free IRS2Go

app, or call 800-906-9887 for information

on free tax return preparation.

•

TCE. The Tax Counseling for the Elderly

(TCE) program offers free tax help for all

taxpayers, particularly those who are 60

years of age and older. TCE volunteers

specialize in answering questions about

pensions and retirement-related issues

unique to seniors. Go to IRS.gov/TCE or

download the free IRS2Go app for informa-

tion on free tax return preparation.

•

MilTax. Members of the U.S. Armed

Forces and qualified veterans may use Mil-

Tax, a free tax service offered by the De-

partment of Defense through Military One-

Source. For more information, go to

MilitaryOneSource (MilitaryOneSource.mil/

MilTax).

Also, the IRS offers Free Fillable Forms,

which can be completed online and then

e-filed regardless of income.

Using online tools to help prepare your re-

turn. Go to IRS.gov/Tools for the following.

•

The Earned Income Tax Credit Assistant

(IRS.gov/EITCAssistant) determines if

you’re eligible for the earned income credit

(EIC).

•

The Online EIN Application (IRS.gov/EIN)

helps you get an employer identification

number (EIN) at no cost.

•

The Tax Withholding Estimator (IRS.gov/

W4App) makes it easier for you to estimate

the federal income tax you want your em-

ployer to withhold from your paycheck.

This is tax withholding. See how your with-

holding affects your refund, take-home pay,

or tax due.

•

The First-Time Homebuyer Credit Account

Look-up (IRS.gov/HomeBuyer) tool pro-

vides information on your repayments and

account balance.

•

The Sales Tax Deduction Calculator

(IRS.gov/SalesTax) figures the amount you

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12 Publication 561 (2-2024)

can claim if you itemize deductions on

Schedule A (Form 1040).

Getting answers to your tax ques-

tions. On IRS.gov, you can get

up-to-date information on current

events and changes in tax law.

•

IRS.gov/Help: A variety of tools to help you

get answers to some of the most common

tax questions.

•

IRS.gov/ITA: The Interactive Tax Assistant,

a tool that will ask you questions and,

based on your input, provide answers on a

number of tax topics.

•

IRS.gov/Forms: Find forms, instructions,

and publications. You will find details on

the most recent tax changes and interac-

tive links to help you find answers to your

questions.

•

You may also be able to access tax infor-

mation in your e-filing software.

Need someone to prepare your tax return?

There are various types of tax return preparers,

including enrolled agents, certified public ac-

countants (CPAs), accountants, and many oth-

ers who don’t have professional credentials. If

you choose to have someone prepare your tax

return, choose that preparer wisely. A paid tax

preparer is:

•

Primarily responsible for the overall sub-

stantive accuracy of your return,

•

Required to sign the return, and

•

Required to include their preparer tax iden-

tification number (PTIN).

Although the tax preparer always signs

the return, you're ultimately responsible

for providing all the information re-

quired for the preparer to accurately prepare

your return and for the accuracy of every item

reported on the return. Anyone paid to prepare

tax returns for others should have a thorough

understanding of tax matters. For more informa-

tion on how to choose a tax preparer, go to Tips

for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business

Services Online. The Social Security Adminis-

tration (SSA) offers online service at SSA.gov/

employer for fast, free, and secure W-2 filing op-

tions to CPAs, accountants, enrolled agents,

and individuals who process Form W-2, Wage

and Tax Statement, and Form W-2c, Corrected

Wage and Tax Statement.

IRS social media. Go to IRS.gov/SocialMedia

to see the various social media tools the IRS

uses to share the latest information on tax

changes, scam alerts, initiatives, products, and

services. At the IRS, privacy and security are

our highest priority. We use these tools to share

public information with you. Don’t post your so-

cial security number (SSN) or other confidential

information on social media sites. Always pro-

tect your identity when using any social net-

working site.

The following IRS YouTube channels provide

short, informative videos on various tax-related

topics in English, Spanish, and ASL.

•

Youtube.com/irsvideos.

•

Youtube.com/irsvideosmultilingua.

•

Youtube.com/irsvideosASL.

CAUTION

Watching IRS videos. The IRS Video portal

(IRSVideos.gov) contains video and audio pre-

sentations for individuals, small businesses,

and tax professionals.

Online tax information in other languages.

You can find information on IRS.gov/

MyLanguage if English isn’t your native lan-

guage.

Free Over-the-Phone Interpreter (OPI) Serv-

ice. The IRS is committed to serving taxpayers

with limited-English proficiency (LEP) by offer-

ing OPI services. The OPI Service is a federally

funded program and is available at Taxpayer

Assistance Centers (TACs), most IRS offices,

and every VITA/TCE tax return site. The OPI

Service is accessible in more than 350 lan-

guages.

Accessibility Helpline available for taxpay-

ers with disabilities. Taxpayers who need in-

formation about accessibility services can call

833-690-0598. The Accessibility Helpline can

answer questions related to current and future

accessibility products and services available in

alternative media formats (for example, braille,

large print, audio, etc.). The Accessibility Help-

line does not have access to your IRS account.

For help with tax law, refunds, or account-rela-

ted issues, go to IRS.gov/LetUsHelp.

Note. Form 9000, Alternative Media Prefer-

ence, or Form 9000(SP) allows you to elect to

receive certain types of written correspondence

in the following formats.

•

Standard Print.

•

Large Print.

•

Braille.

•

Audio (MP3).

•

Plain Text File (TXT).

•

Braille Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to re-

view the available disaster tax relief.

Getting tax forms and publications. Go to

IRS.gov/Forms to view, download, or print all

the forms, instructions, and publications you

may need. Or, you can go to IRS.gov/

OrderForms to place an order.

Getting tax publications and instructions in

eBook format. Download and view most tax

publications and instructions (including the In-

structions for Form 1040) on mobile devices as

eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple's

iBooks for iPad. Our eBooks haven’t been tes-

ted on other dedicated eBook readers, and

eBook functionality may not operate as inten-

ded.

Access your online account (individual tax-

payers only). Go to IRS.gov/Account to se-

curely access information about your federal tax

account.

•

View the amount you owe and a break-

down by tax year.

•

See payment plan details or apply for a

new payment plan.

•

Make a payment or view 5 years of pay-

ment history and any pending or sched-

uled payments.

•

Access your tax records, including key

data from your most recent tax return, and

transcripts.

•

View digital copies of select notices from

the IRS.

•

Approve or reject authorization requests

from tax professionals.

•

View your address on file or manage your

communication preferences.

Get a transcript of your return. With an on-

line account, you can access a variety of infor-

mation to help you during the filing season. You

can get a transcript, review your most recently

filed tax return, and get your adjusted gross in-

come. Create or access your online account at

IRS.gov/Account.

Tax Pro Account. This tool lets your tax pro-

fessional submit an authorization request to ac-

cess your individual taxpayer IRS online ac-

count. For more information, go to IRS.gov/

TaxProAccount.

Using direct deposit. The safest and easiest

way to receive a tax refund is to e-file and

choose direct deposit, which securely and elec-

tronically transfers your refund directly into your

financial account. Direct deposit also avoids the

possibility that your check could be lost, stolen,

destroyed, or returned undeliverable to the IRS.

Eight in 10 taxpayers use direct deposit to re-

ceive their refunds. If you don’t have a bank ac-

count, go to IRS.gov/DirectDeposit for more in-

formation on where to find a bank or credit

union that can open an account online.

Reporting and resolving your tax-related

identity theft issues.

•

Tax-related identity theft happens when

someone steals your personal information

to commit tax fraud. Your taxes can be af-

fected if your SSN is used to file a fraudu-

lent return or to claim a refund or credit.

•

The IRS doesn’t initiate contact with tax-

payers by email, text messages (including

shortened links), telephone calls, or social

media channels to request or verify per-

sonal or financial information. This includes

requests for personal identification num-

bers (PINs), passwords, or similar informa-

tion for credit cards, banks, or other finan-

cial accounts.

•

Go to IRS.gov/IdentityTheft, the IRS Iden-

tity Theft Central webpage, for information

on identity theft and data security protec-

tion for taxpayers, tax professionals, and

businesses. If your SSN has been lost or

stolen or you suspect you’re a victim of

tax-related identity theft, you can learn

what steps you should take.

•

Get an Identity Protection PIN (IP PIN). IP

PINs are six-digit numbers assigned to tax-

payers to help prevent the misuse of their

SSNs on fraudulent federal income tax re-

turns. When you have an IP PIN, it pre-

vents someone else from filing a tax return

with your SSN. To learn more, go to

IRS.gov/IPPIN.

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Publication 561 (2-2024) 13

Ways to check on the status of your refund.

•

Go to IRS.gov/Refunds.

•

Download the official IRS2Go app to your

mobile device to check your refund status.

•

Call the automated refund hotline at

800-829-1954.

The IRS can’t issue refunds before

mid-February for returns that claimed

the EIC or the additional child tax credit

(ACTC). This applies to the entire refund, not

just the portion associated with these credits.

Making a tax payment. Payments of U.S. tax

must be remitted to the IRS in U.S. dollars.

Digital assets are not accepted. Go to IRS.gov/

Payments for information on how to make a pay-

ment using any of the following options.

•

IRS Direct Pay: Pay your individual tax bill

or estimated tax payment directly from your

checking or savings account at no cost to

you.

•

Debit Card, Credit Card, or Digital Wallet:

Choose an approved payment processor

to pay online or by phone.

•

Electronic Funds Withdrawal: Schedule a

payment when filing your federal taxes us-

ing tax return preparation software or

through a tax professional.

•

Electronic Federal Tax Payment System:

Best option for businesses. Enrollment is

required.

•

Check or Money Order: Mail your payment

to the address listed on the notice or in-

structions.

•

Cash: You may be able to pay your taxes

with cash at a participating retail store.

•

Same-Day Wire: You may be able to do

same-day wire from your financial institu-

tion. Contact your financial institution for

availability, cost, and time frames.

Note. The IRS uses the latest encryption

technology to ensure that the electronic pay-

ments you make online, by phone, or from a

mobile device using the IRS2Go app are safe

and secure. Paying electronically is quick, easy,

and faster than mailing in a check or money or-

der.

What if I can’t pay now? Go to IRS.gov/

Payments for more information about your op-

tions.

•

Apply for an online payment agreement

(IRS.gov/OPA) to meet your tax obligation

in monthly installments if you can’t pay

your taxes in full today. Once you complete

the online process, you will receive imme-

diate notification of whether your agree-

ment has been approved.

•

Use the Offer in Compromise Pre-Qualifier

to see if you can settle your tax debt for

less than the full amount you owe. For

more information on the Offer in Compro-

mise program, go to IRS.gov/OIC.

Filing an amended return. Go to IRS.gov/

Form1040X for information and updates.

CAUTION

Checking the status of your amended re-

turn. Go to IRS.gov/WMAR to track the status

of Form 1040-X amended returns.

It can take up to 3 weeks from the date

you filed your amended return for it to

show up in our system, and processing

it can take up to 16 weeks.

Understanding an IRS notice or letter

you’ve received. Go to IRS.gov/Notices to find

additional information about responding to an

IRS notice or letter.

Responding to an IRS notice or letter. You

can now upload responses to all notices and

letters using the Document Upload Tool. For no-

tices that require additional action, taxpayers

will be redirected appropriately on IRS.gov to

take further action. To learn more about the tool,

go to IRS.gov/Upload.

Note. You can use Schedule LEP (Form

1040), Request for Change in Language Prefer-

ence, to state a preference to receive notices,

letters, or other written communications from

the IRS in an alternative language. You may not

immediately receive written communications in

the requested language. The IRS’s commitment

to LEP taxpayers is part of a multi-year timeline

that began providing translations in 2023. You

will continue to receive communications, includ-

ing notices and letters, in English until they are

translated to your preferred language.

Contacting your local TAC. Keep in mind,

many questions can be answered on IRS.gov

without visiting a TAC. Go to IRS.gov/LetUsHelp

for the topics people ask about most. If you still

need help, TACs provide tax help when a tax is-

sue can’t be handled online or by phone. All

TACs now provide service by appointment, so

you’ll know in advance that you can get the

service you need without long wait times. Be-

fore you visit, go to IRS.gov/TACLocator to find

the nearest TAC and to check hours, available

services, and appointment options. Or, on the

IRS2Go app, under the Stay Connected tab,

choose the Contact Us option and click on “Lo-

cal Offices.”

The Taxpayer Advocate

Service (TAS) Is Here To

Help You

What Is TAS?

TAS is an independent organization within the

IRS that helps taxpayers and protects taxpayer

rights. TAS strives to ensure that every taxpayer

is treated fairly and that you know and under-

stand your rights under the Taxpayer Bill of

Rights.

How Can You Learn About Your

Taxpayer Rights?

The Taxpayer Bill of Rights describes 10 basic

rights that all taxpayers have when dealing with

CAUTION

the IRS. Go to TaxpayerAdvocate.IRS.gov to

help you understand what these rights mean to

you and how they apply. These are your rights.

Know them. Use them.

What Can TAS Do for You?

TAS can help you resolve problems that you

can’t resolve with the IRS. And their service is

free. If you qualify for their assistance, you will

be assigned to one advocate who will work with

you throughout the process and will do every-

thing possible to resolve your issue. TAS can

help you if:

•

Your problem is causing financial difficulty

for you, your family, or your business;

•

You face (or your business is facing) an im-

mediate threat of adverse action; or

•

You’ve tried repeatedly to contact the IRS

but no one has responded, or the IRS

hasn’t responded by the date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of

Columbia, and Puerto Rico. To find your advo-

cate’s number:

•

Go to TaxpayerAdvocate.IRS.gov/Contact-

Us;

•

Download Pub. 1546, The Taxpayer Advo-

cate Service Is Your Voice at the IRS, avail-

able at IRS.gov/pub/irs-pdf/p1546.pdf;

•

Call the IRS toll free at 800-TAX-FORM

(800-829-3676) to order a copy of Pub.

1546;

•

Check your local directory; or

•

Call TAS toll free at 877-777-4778.

How Else Does TAS Help

Taxpayers?

TAS works to resolve large-scale problems that

affect many taxpayers. If you know of one of

these broad issues, report it to TAS at IRS.gov/

SAMS. Be sure to not include any personal tax-

payer information.

Low Income Taxpayer Clinics

(LITCs)

LITCs are independent from the IRS and TAS.

LITCs represent individuals whose income is

below a certain level and who need to resolve

tax problems with the IRS. LITCs can represent

taxpayers in audits, appeals, and tax collection

disputes before the IRS and in court. In addi-

tion, LITCs can provide information about tax-

payer rights and responsibilities in different lan-

guages for individuals who speak English as a

second language. Services are offered for free

or a small fee. For more information or to find an

LITC near you, go to the LITC page at

TaxpayerAdvocate.IRS.gov/LITC or see IRS

Pub. 4134, Low Income Taxpayer Clinic List, at

IRS.gov/pub/irs-pdf/4134.pdf.

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14 Publication 561 (2-2024)

To help us develop a more useful index, please let us know if you have ideas for index entries.

See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

Index

Aircraft 5

Annuities 7

Annuity contracts 7

Antiques 4

Appraisals 9

Cost of 9

IRS review of 12

Qualified appraisal 10

Art objects 4

Valued at $20,000 or more 4

Valued at $50,000 or more 4

Assistance (See Tax help)

Boats 5

Bonds 5

Books 5

Business, interest in 7

Cars 5

Certified historic structure 8

Clothing, used 4, 10

Coins 5

Collections:

Books 5

Coins 5

Stamps 5

Comparable properties, sales

of 3

Conservation contribution 8

Cost 2

Rate of increase or decrease 2

Terms of purchase or sale 2

Date of contribution 2

Deductions of more than

$5,000 10

Deductions of more than

$500,000 10

Fair market value 2

Comparable properties, sales

of 3

Cost 2

Date of contribution 2

Determining FMV 2

Opinions of professional

appraisers 3

Problems in determining FMV 3

Replacement cost 3

Form 8283 12

Future events, effect on value 4

Gems and jewelry 5

Household items 4, 10

Interest in a business 7

Inventory 5

IRS review of appraisals 12

Exception 12

Life insurance 7

Market conditions, effect on

value 3

Opinions of professional

appraisers 3

Paintings 4

Partial interest 7

Past events, effect on value 4

Patents 5

Penalties:

Imposed on appraiser 12

Imposed on taxpayer 12

Publications (See Tax help)

Publicly traded securities 10

Qualified appraisal 10

Qualified appraiser 11

Qualified conservation

contribution 8

Real estate 6

Remainder interests 7

Replacement cost 3

Reversion interests 7

Stamps 5

Statement of Value 12

Stocks 5

Tax help 12

Used clothing 4, 10

Valuation of property 4

Annuities 7

Art and Collectibles 4

Cars, boats, and aircraft 5

Collectibles 4

Gems and jewelry 5

Household items 4

Interest in a business 7

Inventory 5

Life insurance and annuity

contracts 7

Partial interest in property 7

Patents 5

Real estate 6

Remainder interests 7

Reversion interests 7

Stocks and bonds 5

Terms of years 7

Used clothing 4

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Publication 561 (2-2024) 15