Tangible personal property is commonly thought of as an asset that can be touched and moved. Examples of tangible personal property include artwork, jewelry, collections, automobiles, furniture, rare coins and stamps, boats, books, antiques, etc.
A gift of tangible personal property can be an appropriate gift to the UCDA Foundation. In addition, such a gift can generate a charitable tax deduction. However, a gift of tangible personal property is subject to certain Internal Revenue Service rules regarding the charitable deduction. Specifically, the IRS has ruled that donated tangible personal property must be put to a use “related” to the purpose or mission of the organization. A related purpose, or use, of a personal property gift must exist in order that the full fair market value of the asset be a charitable deduction. Otherwise, the charitable deduction is limited to the cost basis of the asset.
Some examples of tangible personal property that could have a related use to the UCDA Foundation, if given as a gift, are:
1. Computers; software
2. Books related to design or design education
3. Works of art
4. Office furniture
5. Patents and copyrights
The delivery date, or date of the gift, is the date the tangible personal property is received by the foundation.
VALUATION FOR CHARITABLE DEDUCTION
If a donor claims a charitable deduction of more than $500 for the contribution of tangible personal property, then Part I of IRS Form 8283 must be completed.
If a donor claims a charitable deduction of more than $5,000 for the contribution of tangible personal property, then the donor is required to have a qualified appraisal dated within 60 days of the donation and reported in Part B of the IRS Form 8283. The donor, according to IRS guidelines, must pay the appraisal fee.