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 charitable interest donated to a charitable organization have been published. These new actuarial 

tables were effective June 1, 2023. However, for 

a period prior to June 1, 2023, there is a transitional rule allowing filers to elect to use either 

the former or the new actuarial tables. The transitional 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 organizations. It also explains what kind of information you must have to support the charitable 

contribution deduction you claim on your return.

This publication does not discuss how to figure the amount of your deduction for charitable 

contributions or written records and substantiation required. See Pub. 526, Charitable Contributions, for this information.

Comments and suggestions. We welcome 

your comments about this publication and suggestions 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, instructions, 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

Get forms and other information faster and easier at:

• IRS.gov (English) 

• IRS.gov/Spanish (Español) 

• IRS.gov/Chinese (中文) 

• IRS.gov/Korean (한국어) 

• IRS.gov/Russian (Pусский) 

• IRS.gov/Vietnamese (Tiếng Việt) 

Mar 11, 2024
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 Interactive 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 publications. 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 order current forms, instructions, and publications; 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 already sent us. You can get forms and publications faster online.

Useful Items

You may want to see:

Publication

Charitable Contributions

Forms (and Instructions)

Donee Information Return

Noncash Charitable Contributions

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 property that you contribute, you must first determine its FMV on the date of the contribution. 

This publication focuses the valuation of noncash 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 willing seller, with neither being required to act, and 

both having reasonable knowledge of the relevant 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 reversions, 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 valuation of property, all factors affecting value are 

relevant and must be considered. These include, 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 interest in the property that would limit the charity's 

use of the property.

Stock. If you deliver, without any conditions, a properly endorsed stock certificate to a 

qualified organization or to an agent of the organization, 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 contribution is the date the stock is transferred on the 

books of the corporation.

Options. If you grant an option to a qualified organization to buy real property, you have 

not made a charitable contribution until the organization exercises the option. The amount of 

the contribution is the FMV of the property on 

the date the option is exercised minus the exercise price.

Example. You grant an option to a local 

university, which is a qualified organization, to 

buy real property. Under the option, the university could buy the property at any time during a 

2-year period for $40,000. The FMV of the property on the date the option is granted is 

$50,000.

In the following tax year, the university exercises the option. The FMV of the property on 

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

Therefore, you have made a charitable contribution 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 depends 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 market demand for that property. Depending on the 

type of property, there may be other characteristics 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 organization may be the best indication of its FMV. However, 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 similar sales at similar prices to other persons who 

were not dealers. The promoter said that if Bailey kept the gems for more than 1 year and then 

gave them to charity, Bailey could claim a charitable 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 evidence 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, understandings, or covenants limiting the use or disposition of the property.

Rate of increase or decrease in value. Unless you can show that there were unusual circumstances, 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 consider published price indexes for information on 

general price trends, building costs, commodity 

costs, securities, and works of art sold at auction 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 deduction of $15,000 on their tax return. The appraisal of the painting should include information showing that there were unusual 

circumstances that justify a 50% increase in 

value for the 13 months Corey held the property.

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 transaction. 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 donated property.

Sales of Comparable Properties

The sales prices of properties similar to the donated property are often important in determining the FMV. The weight to be given to each 

sale depends on the following.

• The degree of similarity between the property 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 inflated or deflated.

The comparable sales method of valuing real 

estate is explained later under Valuation of Various 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 provided by the promoter. At the time of the donation, 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 promissory note for the remaining $20,000. The principal 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 contribution. 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 selling 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 similar 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 valuation date. Often, there is no relationship between 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 becomes less important.

To determine the replacement cost of the 

donated property, find the “estimated replacement 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 relationship 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 appraiser’s opinion on matters such as the authenticity of a coin or a work of art, or the most profitable and best use of a piece of real estate, 

depends on the knowledge and competence of 

the professional appraiser and the thoroughness with which the opinion is supported by experience and facts. For a professional appraiser’s opinion to deserve much weight, the facts 

must support the opinion. For additional information, 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 artificially 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 under 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 important method for determining the FMV of donated property. However, the amount of weight 

given to a sale depends on the degree of similarity 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?

Publication 561 (2-2024) 3
Future Events

You may not consider unexpected events happening 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 estimated 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 future earnings and FMV.

Example. You give all your rights in a successful patent to your favorite charity. Your records show that before the valuation date there 

were three stages in the patent's history of 

earnings. First, there was rapid growth in earnings when the invention was introduced. Then, 

there was a period of high earnings when the invention 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 earnings. 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 determining the FMV of ordinary kinds of donated property. For information on appraisals, see Appraisal, 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 paintings, 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 unless 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 contribution deduction of more than $500. In this 

case, you must obtain a qualified appraisal valuing 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 usually 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 consignment 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 condition or better for which you claim an income tax 

charitable contribution deduction of more than 

$500 requires a qualified appraisal and a completed Form 8283. See Deduction over $500 for 

certain clothing or household items, later.

Art and Collectibles

Your income tax charitable contribution donation of art and collectibles, for which you claim a 

deduction of more than $5,000 must be supported 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 photograph of a size and quality fully showing the 

object, preferably a high-resolution digital image, 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 request the statement before filing the tax return 

that reports the donation. Your request must include 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 administration, the IRS will refund the user fee.

Art. Because many kinds of art may be the 

subject of a charitable donation, it is not possible to discuss all of the possible types in this 

publication. Most common are paintings, sculptures, watercolors, prints, drawings, ceramics, 

antiques, decorative arts, textiles, carpets, silver, rare manuscripts, and historical memorabilia.

Authenticity. The professional appraiser 

should use reasonable due diligence to determine 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 assigned foundation number when relevant, is included in a comprehensive on-line archive, or 

whether the art work has an accompanying certificate of authenticity from a recognized authority or expert on the artist.

Physical condition. The physical condition and extent of restoration are both relevant 

in determining the valuation of art and antiques. 

These factors should be addressed in the appraisal. An antique in damaged condition lacking the "original brasses," may be worth much 

less than a similar piece in excellent condition.

Collectibles. Because many kinds of collectibles may be the subject of a charitable donation, it is not possible to discuss all of the possible 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 available 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 contribution.

These sources are not always reliable 

indicators of FMV and should be supported by other evidence.

For example, a dealer may sell an item for 

much less than is shown on a price list, particularly after the item has remained unsold for a 

long time. The price an item sold for in an auction may have been the result of a rigged sale or 

a mere bidding duel. The appraiser must analyze the reference material, and recognize and 

make adjustments for misleading entries. If you 

are claiming an income tax charitable contribution deduction for the donation of a collection 

CAUTION

!

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 always necessary to get an appraisal by a specialized 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 coloring, 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 publisher's estimate of values. Generally, two price levels are shown for each stamp: the price postmarked and the price not postmarked. Contact 

an appraiser for assistance with properly valuing stamp collections.

Coin collections. Many catalogs and other 

reference materials show the writer's or publisher's opinion of the value of coins on or near the 

date of the publication. Like many other collectors' items, the value of a coin depends on the 

demand for it, its age, and its rarity. Another important factor is the coin's condition. For example, 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 distinguish the difference between various Mint State 

grades and circulated grades including extremely 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 determined by selecting comparable sales and adjusting the prices according to the differences 

between the comparable sales and the item being 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 collection you are donating is of modest value, not requiring a written appraisal, the following information 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 illustrations (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 handwritten, 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 unknown or obscure authors may also be of value 

if they are of unusual historical or literary importance. Determining the value of such material is 

difficult. For example, there may be a great difference 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 judgment 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 determined.

Certain commercial firms and trade organizations publish monthly or seasonal guides for 

different regions of the country, containing complete dealer sale prices or dealer average prices 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 condition. The prices are not “official,” and these 

publications are not considered an appraisal of 

any specific donated property. But they do provide 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 donated car, boat, or airplane is an amount not in 

excess of the price listed in a used vehicle pricing 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 mileage, 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 condition, with the same or similar options or accessories, 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 students 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 considered to be no more than $750.

Boats. Except for inexpensive small boats, the 

valuation of boats should be based on an appraisal by a marine surveyor because the physical condition is so critical to the value.

More information. Your deduction for a donated 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 Market 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 between the highest and lowest quoted selling prices 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 dividing 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 after the valuation date, you determine FMV by 

taking the average price between the highest 

and lowest sales prices on the nearest date before and on the nearest date after the valuation 

date. Then you weight these averages in inverse order by the respective number of trading 

days between the selling dates and the valuation 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 valuation 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 

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 exchange. Stocks or bonds listed on more than 

one stock exchange are valued based on the 

prices of the exchange on which they are principally dealt. This applies if these prices are published in a generally available listing or publication of general circulation. If this is not 

applicable, and the stocks or bonds are reported on a composite listing of combined exchanges in a publication of general circulation, 

use the composite list. See also Unavailable prices, 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 prices 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 reasonable period. Then you weight these averages 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 valuation 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 reasonable period after the valuation date, or vice 

versa, then the average price between the highest 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 selling 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 factors to be considered, determining the value of 

large blocks of stock usually requires the help of 

experts specializing in underwriting large quantities 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 consideration 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 restrictions 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 because 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 better knowledge of local conditions.

The appraisal report must contain a complete 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 potential 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 methods 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 adjustments 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 factors when comparing the potential comparable 

property and the donated property.

• Location, size, and zoning or use restrictions.

• Accessibility and road frontage, and available 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 adjusted to account for differences between the 

sale property and the donated property. Because 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 appraiser should document each item of adjustment.

Only comparable sales having the least adjustments in terms of items and/or total dollar 

adjustments should be considered as comparable 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 elements 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 result in a determination of FMV. Instead, it generally tends to set the upper limit of value, particularly 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 property cannot be created because of location, unusual construction, or some other reason. Generally, this method serves to support the value 

determined from other methods. When the replacement 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 following 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 desirable.

6 Publication 561 (2-2024)
Interest in a Business

The FMV of any interest in a closely held business (whether a sole proprietorship or a business 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 determination requires the consideration of all available financial data, as well as all relevant factors affecting 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 including goodwill, if applicable.

• The value of interests in businesses engaged 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 examinations 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 Insurance and Annuity Contracts.

To determine present value, you must know 

the applicable interest rate and use actuarial tables.

Interest rate. The applicable interest rate varies. 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 involving 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 actuarial 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 regulation 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 reversionary interest.

Pub. 1457 explains the use of actuarial factors for computing the present value of a remainder interest in a charitable remainder annuity 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 interest in depreciable property. You can download 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 Regulations 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 tables use a more recent mortality basis than earlier tables. The earlier versions of the publications, Versions 3A, 3B, and 3C, are also 

available: these versions—and the actuarial tables 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 referenced 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 mortality 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 letter ruling. Be sure to include the date of birth of 

each person the duration of whose life may affect the value of the interest. Also include copies of the relevant instruments. The IRS charges 

a user fee for providing special factors.

For more information about requesting a ruling, 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 insurance policy issued by a company regularly engaged 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 element 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 charitable 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 residence 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 contribution, 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 remainder interest being donated is depreciable 

property, you must make an adjustment for depreciation 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 income.

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 property 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 

Publication 561 (2-2024) 7
interest. The example provided in Pub. 1459 explains how to get both kinds of remainder factors and apply them separately to the two elements of the underlying property value. The 

sum of the present value of the remainder interest in the nondepreciable element of the underlying property, plus the present value of the remainder 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 section 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 entire term of your interest in the property. For example, you are entitled to the income from certain 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 information 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 contribution of a qualified real property interest to a 

qualified organization to be used only for conservation 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., organization; or

• An organization that is controlled by, and 

operated for the exclusive benefit of, a governmental unit or a publicly supported 

charity.

The organization must also have a commitment 

to protect the conservation purposes of the donation 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 charitable deduction.

Conservation purposes. Your contribution 

must be made only for one of the following conservation purposes.

• Preserving land areas for outdoor recreation by, or for the education of, the general 

public.

• Protecting a relatively natural habitat of 

fish, wildlife, or plants, or a similar ecosystem.

• Preserving open space, including farmland 

and forest land, if it yields a significant public benefit. It must be either for the scenic 

enjoyment of the general public or under a 

clearly defined federal, state, or local governmental 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 historic structure is a building that is listed individually 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 individual listing in the National Register of Historic Places consists of a more than one building (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 listed 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 

Register building. This contribution can take the 

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 significant building. This can take the form of a contribution 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 qualified real property interest that is an easement or 

other restriction on the exterior of a building unless 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 character.

2. You and the organization receiving the 

contribution must enter into a written 

agreement certifying, under penalty of perjury, that the organization:

a. Is a qualified organization with a purpose of environmental protection, 

land conservation, open space preservation, or historic preservation; and

b. Has the resources to manage and enforce the restriction and a commitment 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, performed by a qualified appraiser;

c. Photographs of the building's entire 

exterior;

d. A description of all restrictions on development 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 building for any of the 5 years before the year of the 

qualified conservation contribution, your charitable deduction is reduced. For more information, 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 access 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 servitude, or a perpetual conservation restriction, depending upon terminology applicable 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 surface 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 manner that you determine the FMV of real estate. See Real Estate, earlier.

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 perpetuity) 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 substantial record of arm's-length sales of conservation easements on other properties that are 

the same as or very similar to the donated conservation easement, you must take into account 

the selling price of these easements. If there are 

no comparable sales, the FMV of the conservation easement is generally determined indirectly 

as the difference between the FMVs of the 

property before and after the grant of the conservation 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 assessment 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 probable that such a change would be permitted. 

Granting a conservation easement may increase, rather than reduce, the value of property, 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 follows.

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 interest in the 8 acres to another qualified organization, 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 conservation 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 deduction 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 property with respect to which the qualified conservation 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 conservation 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 entity 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 Acknowledgment (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 reporting 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 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; 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 securities (quotations published daily), and $6,000 for 

a collection of 15 books ($400 each).

Appraisal. Many, but not all, charitable contributions require a qualified appraisal completed 

by a qualified appraiser. See Qualified Appraiser 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 described 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 qualified appraiser is not required, you must support 

the value you claim for the property you contribute to charity. For property like publicly traded 

securities for which market quotations are readily available, you may not need an appraisal by 

an appraiser. When you need an appraisal by 

an appraiser to support the value of your deduction, more weight is given to an appraisal by an 

appraiser that satisfies most of the requirements of a qualified appraisal by a qualified appraiser.

Cost of appraisals. You may not take a charitable contribution deduction for fees you pay for 

appraisals of your donated property.

Donation less than $5,000. If you give property 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 property worth between $250 and $5,000, you must 

obtain a CWA. You must also substantiate the 

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 qualified 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 December 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 donation.

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 traded 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 attach 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 quotations are published on a daily basis,

• Regularly traded in a national or regional 

over-the-counter market for which published quotations are available, or

• Shares of an open-end investment company (mutual fund) for which quotations 

are published on a daily basis in a newspaper 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 following the end of the calendar quarter in 

which the computation period ends;

• The issuer or agent keeps books and records that list for each transaction during 

the computation period the date of settlement of the transaction, the name and address 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 review the books and records described in 

the above bullet point with respect to transactions during the computation period 

upon receiving reasonable notice.

An interdealer quotation system is any system of general circulation to brokers and dealers 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 regular course of business and containing only 

quotations of that broker or dealer is not an interdealer quotation system.

The average trading price is the average 

price of all transactions (weighted by volume), 

other than original issue or redemption transactions, conducted through a U.S. office of a 

broker or dealer who maintains a market in the 

issue of the security during the computation period. 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 computation periods during October through December 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, inventory, publicly traded stock, or intellectual 

property.

If you do not obtain a qualified appraisal 

and/or attach the appraisal to your return, if required, you cannot deduct your contribution, unless 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 Appraisal Practice.

• Meets the relevant requirements of Regulations 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 contribution is first claimed. For an appraisal 

report dated before the date of the contribution, 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 contribution, the valuation effective date must be 

the date of the contribution.

• Does not involve a prohibited appraisal fee.

You must receive the qualified appraisal before the due date, including extensions, of the 

return on which a charitable contribution deduction 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 property 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 relevant under the tax law. There are four exceptions.

• If you claim a deduction of $20,000 or 

more for donations of art, you should attach 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 building 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 familiar with the type of property to determine that the property appraised is the 

property that was (or will be) contributed.

2. The physical condition of any tangible personal property or real property.

3. The date (or expected date) of contribution (valuation effective date).

4. The terms of any agreement or understanding entered into (or expected to be 

entered into) by or on behalf of the donor 

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 particular use; or

c. Reserves to, or confers upon, anyone 

(other than a donee organization or an 

organization participating with a donee organization in cooperative fundraising) any right to the income from 

the donated property or to the possession of the property, including the 

right to vote donated securities, to acquire the property by purchase or otherwise, or to designate the person 

having the income, possession, or 

right to acquire the property.

5. The name, address, and taxpayer identification number (TIN) of the qualified appraiser and, if the appraiser is a partner, 

an employee, or an independent contractor 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 appraiser who signs the appraisal to value 

the type of property being valued, including the appraiser's background, experience, education, and any membership in 

professional appraisal associations.

7. A statement that the appraisal was prepared for income tax purposes.

8. The declaration required by Regulations 

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

9. The appraised FMV on the date (or expected date) of contribution.

10. The method of valuation used to determine FMV, such as the sales comparison 

approach, cost approach, or income approach.

11. The specific basis for the valuation, such 

as any specific comparable sales transaction.

12. The report completion date.

Art objects. The following are examples of 

information that should be included in a description of donated art objects. Appraisals of art objects—paintings in particular—should include 

all of the following.

1. A complete description of the object, indicating 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 period 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 profession and in the particular artistic 

school or time period.

Number of qualified appraisals. A separate 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 experience 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 professional 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 property being valued. To meet the minimum education requirement, the individual must have successfully 

completed professional or college-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 employee apprenticeship or education program similar to professional or college-level courses.

2. The individual regularly prepares appraisals for which they are paid.

3. The individual is not an excluded individual (defined later).

In addition, the appraiser must make a declaration in the appraisal that, because of their 

background, experience, education, and membership in professional associations, they are 

qualified to make appraisals of the type of property 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 complies with the requirements, including signing 

the qualified appraisal and the Declaration of 

Appraiser section on Form 8283, Section B.

Excluded individuals. The following individuals 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 donor 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 acquisition 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 acquired a painting from an art dealer, neither 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 related 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 persons.

7. An individual who receives a prohibited 

appraisal fee for the appraisal of the donated property. See Prohibited appraisal fee, 

earlier.

8. An individual who is prohibited from practicing 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 individual.

In addition, an individual is not a qualified 

appraiser for a particular donation if the donor 

had knowledge of facts that would cause a reasonable person to expect the appraiser to 

falsely overstate the value of the donated property. 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 

Publication 561 (2-2024) 11
property, the appraiser is not a qualified appraiser 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 refund, and the appraisal resulted in:

1. A substantial valuation misstatement,

2. A substantial estate or gift valuation understatement, 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 described 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 understatement of tax liability, and may have their appraisal 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 reasonable 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 similar items of property to the same donee organization, 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 donee.

IRS Review of Appraisals

In reviewing an income tax return, the IRS may 

accept the claimed value of the donated property, based on information or appraisals sent 

with the return, or may make its own determination of FMV. In either case, the IRS may:

• Contact the taxpayer to get more information;

• Refer any valuation issues to an IRS appraiser or valuation specialist;

• Refer the issue to Art Appraisal Services 

(AAS), a department of professional appraisers who consults with the 

Commissioner's Art Advisory Panel, a 

group of independent dealers and curators. 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 require appraisers of highly specialized experience and knowledge.

Responsibility of the IRS. The IRS is responsible for reviewing appraisals, but it is not responsible 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 appraisers.

Timing of IRS action. The IRS generally does 

not approve valuations or appraisals before the 

actual filing of the tax return to which the appraisal applies. In addition, the IRS generally 

does not issue advance rulings approving or 

disapproving such appraisals.

Exception. For a request submitted as described 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 review of the taxpayer's appraisal and claimed 

value. It does not guarantee a taxpayer's entitlement 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 underpayment 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 download 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 statements (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 options 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 preparation may not be available through Free File. 

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

for free online federal tax preparation, e-filing, and direct deposit or payment options.

• VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to 

people with low-to-moderate incomes, persons with disabilities, and limited-English-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 information on free tax return preparation.

• MilTax. Members of the U.S. Armed 

Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military OneSource. 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 return. 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 employer to withhold from your paycheck. 

This is tax withholding. See how your withholding affects your refund, take-home pay, 

or tax due.

• The First-Time Homebuyer Credit Account 

Look-up (IRS.gov/HomeBuyer) tool provides information on your repayments and 

account balance.

• The Sales Tax Deduction Calculator 

(IRS.gov/SalesTax) figures the amount you 

12 Publication 561 (2-2024)
can claim if you itemize deductions on 

Schedule A (Form 1040).

Getting answers to your tax questions. 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 interactive links to help you find answers to your 

questions.

• You may also be able to access tax information 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 accountants (CPAs), accountants, and many others 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 substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification number (PTIN).

Although the tax preparer always signs 

the return, you're ultimately responsible 

for providing all the information required 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 information 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 Administration (SSA) offers online service at SSA.gov/

employer for fast, free, and secure W-2 filing options 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 social security number (SSN) or other confidential 

information on social media sites. Always protect your identity when using any social networking 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 presentations 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 language.

Free Over-the-Phone Interpreter (OPI) Service. The IRS is committed to serving taxpayers 

with limited-English proficiency (LEP) by offering 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 languages.

Accessibility Helpline available for taxpayers with disabilities. Taxpayers who need information 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 Helpline does not have access to your IRS account. 

For help with tax law, refunds, or account-related issues, go to IRS.gov/LetUsHelp.

Note. Form 9000, Alternative Media Preference, 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 review 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 Instructions 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 tested on other dedicated eBook readers, and 

eBook functionality may not operate as intended.

Access your online account (individual taxpayers only). Go to IRS.gov/Account to securely access information about your federal tax 

account.

• View the amount you owe and a breakdown by tax year.

• See payment plan details or apply for a 

new payment plan.

• Make a payment or view 5 years of payment history and any pending or scheduled 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 online account, you can access a variety of information to help you during the filing season. You 

can get a transcript, review your most recently 

filed tax return, and get your adjusted gross income. Create or access your online account at 

IRS.gov/Account.

Tax Pro Account. This tool lets your tax professional submit an authorization request to access your individual taxpayer IRS online account. 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 electronically 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 receive their refunds. If you don’t have a bank account, go to IRS.gov/DirectDeposit for more information 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 affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by email, text messages (including 

shortened links), telephone calls, or social 

media channels to request or verify personal or financial information. This includes 

requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft Central webpage, for information 

on identity theft and data security protection 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 taxpayers to help prevent the misuse of their 

SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return 

with your SSN. To learn more, go to 

IRS.gov/IPPIN.

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 payment 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 using 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 instructions.

• 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 institution. Contact your financial institution for 

availability, cost, and time frames.

Note. The IRS uses the latest encryption 

technology to ensure that the electronic payments 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 order.

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

Payments for more information about your options.

• 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 immediate notification of whether your agreement 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 Compromise 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 return. 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 notices 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 Preference, 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, including 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 issue 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. Before 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 “Local 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 understand 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 everything 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 immediate 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 advocate’s number:

• Go to TaxpayerAdvocate.IRS.gov/ContactUs;

• Download Pub. 1546, The Taxpayer Advocate Service Is Your Voice at the IRS, available 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 taxpayer 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 addition, LITCs can provide information about taxpayer rights and responsibilities in different languages 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.

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

A

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)

B

Boats 5

Bonds 5

Books 5

Business, interest in 7

C

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

D

Date of contribution 2

Deductions of more than 

$5,000 10

Deductions of more than 

$500,000 10

F

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

G

Gems and jewelry 5

H

Household items 4, 10

I

Interest in a business 7

Inventory 5

IRS review of appraisals 12

Exception 12

L

Life insurance 7

M

Market conditions, effect on 

value 3

O

Opinions of professional 

appraisers 3

P

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

Q

Qualified appraisal 10

Qualified appraiser 11

Qualified conservation 

contribution 8

R

Real estate 6

Remainder interests 7

Replacement cost 3

Reversion interests 7

S

Stamps 5

Statement of Value 12

Stocks 5

T

Tax help 12

U

Used clothing 4, 10

V

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

Publication 561 (2-2024) 15