Appraisal for Charitable Donation in Delaware

AppraiseItNow appraises many different asset types for donations, including: 

• Personal property: Furniture, household items, jewelry, sports memorabilia
• Art: Museum-grade and lower-tier artwork
• Machinery & Equipment: medical equipment, trailers, tractors, CNC machinery
• Inventory: large quantities of assets, manufactured or purchased
• Cryptocurrency: Bitcoin, NFTs, Ethereum
• Vehicles: cars, boats & marine surveys, trucks, buses
• Business Interests: Privately-held shares in companies or funds, LLCs, notes, and more 

Who We Service

For charitable contribution appraisals, we mainly service: 

• Households & HNWIs
• Operating businesses donating equipment or inventory
• Individuals using Charitable Remainder Unitrusts (CRUT) and Charitable Remainder Trusts (CRT)
• Estate & Tax planners
• Charitable consultants and planners
• Registered Investment Advisors
• Accountants and Tax Attorneys

Do I need an appraisal for charitable donations?

You generally need a qualified appraisal for non-cash donations when any single item is valued over $5,000, or when a group of similar items (like furniture, artwork, or books) given during the year exceeds $5,000 in total. Certain higher-value categories have stricter rules—for example, artwork over $20,000 or non-cash property over $500,000 requires attaching the full appraisal.

You don't need a qualified appraisal for publicly traded securities, some non-publicly traded stock valued at $10,000 or less, or many vehicle donations where the charity sells the car and gives you Form 1098-C.

What documentation is required for non-cash charitable contributions over $5,000?

You generally need a qualified appraisal prepared by a qualified appraiser, Form 8283 with Section B completed and attached to your return, and a contemporaneous written acknowledgment from the charity that includes the name, date, description, and whether you received any goods or services.

Your records should show:

• Date and manner of acquisition
• Cost or adjusted basis
• Method used to determine fair market value

For very high-value donations—such as artwork over $20,000 or property over $500,000—you must attach the appraisal report itself. Otherwise, the completed 8283 form is sufficient. 

What is IRS Form 8283?

IRS Form 8283 is used to report non-cash charitable contributions and substantiate your deduction. It's required when your total non-cash donations exceed $500 for the year.

You list the description of property, date acquired and how acquired, cost or adjusted basis, and fair market value and valuation method. The form has Section A for items or groups valued at $5,000 or less, and Section B for items or groups over $5,000, which includes appraiser and donee signatures. Form 8283 is attached to your income tax return.

How do I determine the value of donated items?

You generally use fair market value, which is what a willing buyer would pay a willing seller when neither is under pressure and both have reasonable knowledge of the facts.

Common valuation approaches include looking at comparable sales of similar items, using retail or secondary market prices from thrift stores, resale platforms, or auction sites adjusted for condition, or calculating salvage value for damaged or obsolete inventory. Key factors are the actual condition (new, good, fair, or poor) and any quick-sale or bulk-sale discounts for large lots. For donations over $5,000, a qualified appraisal generally determines fair market value.

How do I get an appraisal for donations?

Depending on the type of asset you've donated, find an appraiser who is a specialist in that asset. If you contact AppraiseItNow, we can ensure your appraisal is completed by the right appraiser, whether it's business interests, equipment, artwork, or furniture. 

If you find an appraiser yourself, confirm they hold a recognized professional designation and meet IRS "qualified appraiser" standards.

Finally, ensure the written report meets IRS "qualified appraisal" content rules and is signed. You'll then use this information to complete Section B of Form 8283, and you may need the appraiser's signature there.

Do you have to attach an appraisal to Form 8283 in my tax filing?

This depends on the value and type of property. For most donations over $5,000, you do not need to attach the appraisal to your return. Although, you must obtain a qualified appraisal, complete Section B of Form 8283, and keep the appraisal in your records. 

However, you must attach the appraisal report in the following situations:

• If the donation is of artwork worth more than $20,000
• The collection of items you are looking to claim is worth more than $500,000, regardless of asset type

When is Section A vs. Section B required of Form 8283?

Use Section A when the donated property is non-cash, your total non-cash contributions exceed $500, and each item or group of similar items listed has a value of $5,000 or less.

Use Section B when any single item or group of similar items is valued over $5,000 (except some securities). In these cases, a qualified appraisal is generally required, and the appraiser completes the "Declaration of Appraiser" section in Part IV of Section B, while the charity completes the "Donee Acknowledgment" in Part V. 

What makes an appraiser "qualified" for Form 8283?

A "qualified appraiser" must meet IRS-defined standards. Generally, they must:

• Have earned a recognized professional appraisal designation from a qualified organization or otherwise meet education and experience requirements
• Regularly perform appraisals for the specific type of property being valued, such as art, antiques, real estate, or business assets
• Be able to show verifiable education and experience in valuing that kind of property
• Be independent, having no prohibited relationship with the donor or charity and no interest in the property or donation outcome

What is a qualified appraisal for charitable contributions?

A qualified appraisal is a written, IRS-compliant valuation report prepared by a qualified appraiser. It must relate to a specific donation and have an effective date close to the contribution date.

The appraisal describes the property in detail, including condition, physical characteristics, and any restrictions. It states the fair market value, valuation methods (such as comparable sales or market data), and the assumptions used. It includes:

• Appraiser's name, qualifications, and signature
• Donor's name
• Date of the appraisal
• Effective Date
• And more

See our complete guide and checklist for 8283 appraisals. 

What happens if the IRS challenges the value?

If the IRS believes your valuation is too high, it can reduce or disallow part or all of the charitable deduction. It may request additional substantiation, such as the full appraisal report or proof of cost basis and acquisition details, and can refer the case to internal valuation specialists, especially for high-value or unusual property like art, collectibles, or closely held business interests.

Potential consequences include:

• Additional tax owed plus interest
• Penalties for substantial or gross valuation misstatements

A solid, defensible appraisal and thorough records reduce the risk and help defend your position. Request an appraisal if you'd like to feel confident in your tax filing. 

How long does a charitable donation appraisal take?

It completely depends on what types of assets you are looking to have appraised and how large the assignment is. 

Below are rough estimates by asset type: 

• Vehicles: 3-4 days
• Personal Property (art, furniture, etc.): 1-2 weeks
• Machinery & Equipment: 1-2 weeks
• Inventory: 1-2 weeks
• Business Valuations: 2-3 weeks

• Dover
• Wilmington
• Newark
• Middletown
• Seaford
• Milford
• New Castle
• Smyrna
• Elsmere
• Georgetown 
• Bear
• Claymont
• Rehoboth Beach
• Delmar
• Milford
• Lewes
• Milton
• Harford
• Bridgeville
• Greenwood 
• And more!