45908 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Proposed Rules 

Civil Aviation, it is FAA policy to 

comply with ICAO Standards and 

Recommended Practices to the 

maximum extent practicable. The FAA 

has determined that this proposed rule 

does not conflict with any international 

agreement of the United States. 

Paperwork Reduction Act 

The OMB control number assigned to 

the collection of information for this 

proposed rule is 2120–0021. 

Plain Language 

In response to the June 1, 1998 

Presidential Memorandum regarding the 

use of plain language, the FAA reexamined the writing style currently 

used in the development of regulations. 

The memorandum requires federal 

agencies to communicate clearly with 

the public. We are interested in your 

comments on whether the style of this 

document is clear, and in any other 

suggestions you might have to improve 

the clarity of FAA communications that 

affect you. 

You can get more information about 

the Presidential memorandum and the 

plain language initiative at http:// 

www.plainlanguage.gov. 

Regulations That Significantly Affect 

Energy Supply, Distribution, or Use 

The FAA has analyzed this NPRM 

under Executive Order 13211, Actions 

Concerning Regulations that 

Significantly Affect Energy Supply, 

Distribution, or Use (May 18, 2001). We 

have determined that it is not a 

‘‘significant energy action’’ under the 

executive order because it is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866, and it is not 

likely to have a significant adverse effect 

on the supply, distribution, or use of 

energy. 

IV. Additional Information 

Comments Invited 

The FAA invites interested persons to 

participate in this rulemaking by 

submitting written comments, data, or 

views. We also invite comments relating 

to the economic, environmental, energy, 

or federalism impacts that might result 

from adopting the proposals in this 

document. The most helpful comments 

reference a specific portion of the 

proposal, explain the reason for any 

recommended change, and include 

supporting data. To ensure the docket 

does not contain duplicate comments, 

please send only one copy of written 

comments, or if you are filing comments 

electronically, please submit your 

comments one time. 

We will file in the docket all 

comments we receive, as well as a 

report summarizing each substantive 

public contact with FAA personnel 

concerning this proposed rulemaking. 

Before acting on this proposal, we will 

consider all comments we receive on or 

before the closing date for comments. 

We will consider comments filed after 

the comment period has closed if it is 

possible to do so without incurring 

expense or delay. We may change this 

proposal in light of the comments we 

receive. 

Proprietary or Confidential Business 

Information 

Do not file in the docket information 

that you consider to be proprietary or 

confidential business information. Send 

or deliver this information directly to 

the person identified in the FOR FURTHER

INFORMATION CONTACT section of this 

document. You must mark the 

information that you consider 

proprietary or confidential. If you send 

the information on a disk or CD–ROM, 

mark the outside of the disk or CD–ROM 

and also identify electronically within 

the disk or CD–ROM the specific 

information that is proprietary or 

confidential. 

Under § 11.35(b), when we are aware 

of proprietary information filed with a 

comment, we do not place it in the 

docket. We hold it in a separate file to 

which the public does not have access, 

and place a note in the docket that we 

have received it. If we receive a request 

to examine or copy this information, we 

treat it as any other request under the 

Freedom of Information Act (5 U.S.C. 

552). We process such a request under 

the DOT procedures found in 49 CFR 

part 7. 

Availability of Rulemaking Documents 

You can get an electronic copy using 

the Internet by—

(1) Searching the Federal 

eRulemaking Portal (http:// 

www.regulations.gov); 

(2) Visiting the FAA’s Regulations and 

Policies web page at: http:// 

www.faa.gov/regulations_policies; or 

(3) Accessing the Government 

Printing Office’s web page at: http:// 

www.gpoaccess.gov/fr/index.html. 

You can also get a copy by sending a 

request to the Federal Aviation 

Administration, Office of Rulemaking, 

ARM–1, 800 Independence Avenue, 

SW., Washington, DC 20591, or by 

calling (202) 267–9680. Make sure to 

identify the docket number, notice 

number, or amendment number of this 

rulemaking. 

You may access all documents the 

FAA considered in developing this 

proposed rule, including economic 

analyses and technical reports, from the 

internet through the Federal 

eRulemaking Portal referenced in 

paragraph (1). 

List of Subjects in 14 CFR Part 61 

Aircraft, Aircraft pilots, Airmen, 

Airplanes, Air safety, Air transportation, 

Aviation safety, Balloons, Helicopters, 

Rotorcraft, Students. 

The Proposed Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend part 61 of Title 14 

of the Code of Federal Regulations (14 

CFR part 61) as follows: 

PART 61—CERTIFICATION: PILOTS, 

FLIGHT INSTRUCTORS, AND GROUND 

INSTRUCTORS 

1. The authority citation for part 61 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701–

44703, 44707, 44709–44711, 45102–45103, 

45301–45302. 

2. Revise section 3 of SFAR No. 73 to 

read as follows: 

Special Federal Aviation Regulation No. 

73—Robinson R–22/R–44 Special Training 

and Experience Requirements 

* * * * * 

3. Expiration date. This SFAR number 

73 shall remain in effect until further 

notice. 

Issued in Washington, DC on July 30, 2008. 

James J. Ballough, 

Director, Flight Standards Service. 

[FR Doc. E8–18239 Filed 8–6–08; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–140029–07] 

RIN 1545–BH62 

Substantiation and Reporting 

Requirements for Cash and Noncash 

Charitable Contribution Deductions 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: These proposed regulations 

provide guidance concerning 

substantiation and reporting 

requirements for cash and noncash 

charitable contributions under section 

170 of the Internal Revenue Code 

(Code). The regulations reflect the 

enactment of provisions of the 

American Jobs Creation Act of 2004 and 


rmajette on PRODPC74 with PROPOSALS
Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Proposed Rules 45909 

the Pension Protection Act of 2006. The 

regulations provide guidance to 

individuals, partnerships, and 

corporations that make charitable 

contributions, and will affect any donor 

claiming a deduction for a charitable 

contribution after the date these 

regulations are published as final 

regulations in the Federal Register. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by November 5, 2008. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–140029–07), room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–140029–

07), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue, 

NW., Washington, DC 20224, or sent 

electronically via the Federal 

eRulemaking Portal at 

www.regulations.gov (IRS REG–140029–

07). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Susan J. Kassell at (202) 622–5020; 

concerning submissions of comments 

and requests for a hearing, 

Oluwafunmilayo Taylor at (202) 622–

7180 (not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

The collections of information 

contained in this notice of proposed 

rulemaking have been submitted to the 

Office of Management and Budget for 

review in accordance with the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3507(d)). Comments on the 

collections of information should be 

sent to the Office of Management and 

Budget, Attn: Desk Officer for the 

Department of the Treasury, Office of 

Information and Regulatory Affairs, 

Washington, DC 20503, with copies to 

the Internal Revenue Service, Attn: IRS 

Reports Clearance Officer, 

SE:W:CAR:MP:T:T:SP, Washington, DC 

20224. Comments on the collections of 

information should be received by 

October 6, 2008. Comments are 

specifically requested concerning: 

Whether the proposed collections of 

information are necessary for the proper 

performance of the functions of the IRS, 

including whether the information will 

have practical utility; 

The accuracy of the estimated burden 

associated with the proposed collections 

of information; 

How the quality, utility, and clarity of 

the information to be collected may be 

enhanced; 

How the burden of complying with 

the proposed collections of information 

may be minimized, including through 

the application of automated collection 

techniques or other forms of information 

technology; and 

Estimates of capital or start-up costs 

and costs of operation, maintenance, 

and purchase of services to provide 

information. 

The collections of information in 

these proposed regulations are in 

§§ 1.170A–15(a) and (d)(2); 1.170A–

16(a), (b), (c), (d), (e), and (f); 1.170A–

17(a)(3) and (a)(7); and 1.170A–18(a)(2) 

and (b). These collections of information 

will help the IRS determine if a taxpayer 

is entitled to a claimed deduction for a 

charitable contribution. The collections 

of information are required to obtain a 

benefit. The likely respondents are 

individuals, partnerships, and 

corporations that claim a deduction for 

a charitable contribution. 

The collections of information may 

vary depending on the item contributed, 

the amount of the deduction claimed for 

the contribution, and whether the 

taxpayer claiming the deduction is an 

individual, partnership, S corporation, 

C corporation that is a personal service 

corporation or closely held corporation, 

or other C corporation. 

The following estimates are based on 

the information that is available to the 

IRS. A respondent may require more or 

less time, depending on the 

circumstances. 

The estimated total annual reporting 

burden is 226,419 hours. 

The estimated annual burden per 

respondent varies from 5 minutes to 4 

hours, with an estimated average annual 

burden of slightly more than 1 hour. 

The estimated number of respondents is 

201,920. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid control 

number assigned by the Office of 

Management and Budget. 

Books or records relating to a 

collection of information must be 

retained as long as their contents may 

become material in the administration 

of any internal revenue law. Generally, 

tax returns and return information are 

confidential, as required by section 

6103. 

Background 

This document contains proposed 

amendments to the Income Tax 

Regulations (26 CFR part 1) for 

substantiating and reporting deductions 

for charitable contributions under 

section 170 of the Internal Revenue 

Code. Section 170(f)(11), as added by 

section 883 of the American Jobs 

Creation Act of 2004, Public Law 108–

357 (118 Stat. 1418) (Jobs Act), contains 

reporting and substantiation 

requirements relating to deductions for 

noncash charitable contributions. Under 

section 170(f)(11)(C), for contributions 

of property for which a deduction of 

more than $5,000 is claimed, taxpayers 

are required to obtain a qualified 

appraisal of the property. Under section 

170(f)(11)(D), for contributions of 

property for which a deduction of more 

than $500,000 is claimed, taxpayers 

must attach a qualified appraisal of the 

property to the tax return on which the 

deduction is claimed. 

For appraisals prepared with respect 

to returns filed on or before August 17, 

2006, § 1.170A–13(c) of the current 

regulations provides definitions of the 

terms ‘‘qualified appraisal’’ and 

‘‘qualified appraiser’’. For appraisals 

prepared with respect to returns filed 

after August 17, 2006, section 

170(f)(11)(E), as added by the Jobs Act 

and amended by section 1219 of the 

Pension Protection Act of 2006, Public 

Law 109–280 (120 Stat. 780) (PPA), 

provides statutory definitions of the 

terms qualified appraisal and qualified 

appraiser. 

Section 170(f)(11)(E)(i) provides that 

the term qualified appraisal means an 

appraisal that is (1) treated as a qualified 

appraisal under regulations or other 

guidance prescribed by the Secretary, 

and (2) conducted by a qualified 

appraiser in accordance with generally 

accepted appraisal standards and any 

regulations or other guidance prescribed 

by the Secretary. 

Section 170(f)(11)(E)(ii) provides that 

the term qualified appraiser means an 

individual who (1) has earned an 

appraisal designation from a recognized 

professional appraiser organization or 

has otherwise met minimum education 

and experience requirements set forth in 

regulations prescribed by the Secretary, 

(2) regularly performs appraisals for 

which the individual receives 

compensation, and (3) meets such other 

requirements as may be prescribed by 

the Secretary in regulations or other 

guidance. Section 170(f)(11)(E)(iii) 

further provides that an individual will 

not be treated as a qualified appraiser 

unless that individual (1) demonstrates 

verifiable education and experience in 

valuing the type of property subject to 

the appraisal, and (2) has not been 

prohibited from practicing before the 

IRS by the Secretary under section 

330(c) of Title 31 of the United States 

Code at any time during the 3-year 

period ending on the date of the 

appraisal. 


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45910 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Proposed Rules 

On October 19, 2006, the IRS and the 

Treasury Department released Notice 

2006–96, 2006–46 IRB 902 (see 

§ 601.601(d)(2)(ii)(b) of this chapter), 

which provides transitional guidance 

relating to section 170(f)(11)(E) as 

amended by the PPA. Specifically, 

Notice 2006–96 provides transitional 

safe harbor definitions for the terms 

‘‘qualified appraisal’’ (section 3.02(1)), 

‘‘generally accepted appraisal 

standards’’ (section 3.02(2)), ‘‘appraisal 

designation’’ (section 3.03(1)), 

‘‘education and experience in valuing 

the type of property’’ (section 3.03(2)), 

and ‘‘minimum education and 

experience’’ (section 3.03(3)). These 

definitions apply to contributions of 

property for which a deduction of more 

than $5,000 is claimed on returns filed 

after August 17, 2006. Notice 2006–96 

solicited comments regarding the 

definitions of these terms. All comments 

received were considered in drafting 

these regulations. 

Section 1216 of the PPA added 

section 170(f)(16), which provides that 

no deduction is allowed for a 

contribution of clothing or a household 

item unless the clothing or household 

item is in good used condition or better. 

Section 1217 of the PPA added section 

170(f)(17), which imposes a 

recordkeeping requirement for all cash 

contributions, regardless of amount. 

Section 1219 of the PPA added section 

6695A, which imposes penalties on 

appraisers in certain circumstances. 

Regulations implementing the penalty 

provisions of section 6695A will be 

published separately. 

Section 170(f)(11)(H) authorizes the 

Secretary to prescribe regulations as 

may be necessary or appropriate to carry 

out the purposes of section 170(f)(11), 

including regulations that may provide 

that some or all of the requirements of 

section 170(f)(11) do not apply in 

appropriate cases. Other statutory 

authority to issue regulations is in 

sections 170(f)(11)(B), (C), (E)(i)(I) and 

(II), and (E)(ii)(I) and (III). 

Explanation of Provisions 

I. In General 

The proposed regulations generally 

implement the Jobs Act and PPA 

changes to the substantiation and 

reporting rules for charitable 

contributions. For example, the 

proposed regulations implement the 

recordkeeping requirements imposed by 

the PPA for all cash contributions and 

the new definitions of a qualified 

appraisal and qualified appraiser 

applicable to all noncash contributions. 

The proposed regulations also 

incorporate the substantiation 

requirements for noncash contributions 

imposed by the Jobs Act on (1) a C 

corporation (other than a closely held 

corporation or a personal service 

corporation) claiming a deduction of 

more than $5,000, and (2) any taxpayer 

claiming a deduction in excess of 

$500,000. 

The proposed regulations also 

generally incorporate many of the 

requirements of § 1.170A–13, except to 

the extent § 1.170A–13 is inconsistent 

with the Jobs Act and PPA 

requirements. For example, many of the 

requirements of § 1.170A–13(c)(3) for a 

qualified appraisal are incorporated in 

proposed § 1.170A–17(a); many of the 

‘‘appraisal summary’’ requirements of 

§ 1.170A–13(c)(4) are incorporated in 

the required entries for a completed 

Form 8283, ‘‘Noncash Charitable 

Contributions,’’ in proposed § 1.170A–

16; and many of the requirements of 

§ 1.170A–13(c)(5) for a qualified 

appraiser are incorporated in proposed 

§ 1.170A–17(b). 

The IRS and the Treasury Department 

may propose additional changes to the 

substantiation regulations in the future 

and hereby request comments 

concerning additional issues that should 

be addressed. 

II. Cash, Check or Other Monetary Gifts 

Proposed § 1.170A–15 implements the 

requirements of section 170(f)(17), 

which was added by the PPA and 

provides that no deduction is allowed 

for any contribution of a cash, check, or 

other monetary gift unless the donor 

maintains as a record of the contribution 

a bank record or written communication 

from the donee. Compare The Check 

Clearing for the 21st Century Act, Public 

Law 108–100, 117 Stat. 1178–1180 (12 

U.S.C. 5002(16) and 5003(b)), which 

provides guidance under the banking 

laws regarding substitute checks. The 

bank record or written communication 

must show the name of the donee, the 

date of the contribution, and the amount 

of the contribution. 

After section 170(f)(17) was enacted, 

the IRS and the Treasury Department 

received questions and comments about 

the new requirements. One commenter 

suggested a ‘‘de minimis exception,’’

under which donors of small amounts 

would not be required to maintain bank 

records or written communications from 

the donee. This suggestion was not 

adopted in the proposed regulations 

because the exception would be 

contrary to the statute and the express 

language in the legislative history that 

the provision applies ‘‘regardless of the 

amount.’’ However, there is precedent 

for exempting from the substantiation 

requirements certain types of payments 

for which a charitable beneficiary 

cannot provide a receipt, either because 

the charitable beneficiary has not yet 

been identified or because the charitable 

beneficiary has no firsthand knowledge 

of the amount of the payment. For 

example, a taxpayer making a 

contribution in the form of a transfer to 

a charitable remainder trust is not 

required to obtain the contemporaneous 

written acknowledgment generally 

required under section 170(f)(8). A 

similar exception is contained in the 

proposed regulations for monetary 

contributions to a charitable remainder 

trust of less than $250. The proposed 

regulations also provide an exception 

from the substantiation requirements for 

unreimbursed expenses of less than 

$250 incurred incident to the rendition 

of services to a charitable organization. 

Taxpayers claiming deductions for 

monetary contributions to a charitable 

remainder trust or for out of pocket 

expenses incurred incident to the 

rendition of services are advised to 

maintain records of the gifts or 

expenses. 

Some commenters asked how to 

comply with section 170(f)(17) if a bank 

statement does not include the name of 

the donee. In this situation, a monthly 

bank statement and a photocopy or 

image obtained from the bank of the 

front of the check indicating the name 

of the donee would satisfy the 

provision. 

III. Revised Noncash Substantiation 

Requirements 

As under current rules, the proposed 

regulations provide that donors who 

claim deductions for noncash 

contributions of less than $250 are 

required to obtain a receipt from the 

donee or keep reliable records. The 

proposed regulations provide that 

donors who make contributions of $250 

or more but not more than $500 are 

required to obtain only a 

contemporaneous written 

acknowledgment, as provided under 

section 170(f)(8) and § 1.170A–13(f), and 

are not required to obtain any other 

written records. No revisions to 

§ 1.170A–13(f) are proposed in these 

proposed regulations. For claimed 

contributions of more than $500 but not 

more than $5,000, the donor must 

obtain a contemporaneous written 

acknowledgment and must file a 

completed Form 8283 (Section A) with 

the return on which the deduction is 

claimed. For claimed contributions of 

more than $5,000, in addition to a 

contemporaneous written 

acknowledgment, a qualified appraisal 

generally is required, and either Section 

A or Section B of Form 8283 (depending 


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Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Proposed Rules 45911 

on the type of property contributed) 

must be completed and filed with the 

return on which the deduction is 

claimed. For claimed contributions of 

more than $500,000, the donor must 

attach a copy of the qualified appraisal 

to the return. The proposed regulations 

also provide that the requirements for 

substantiation that must be submitted 

with a return also apply to the return for 

any carryover year under section 170(d). 

Section 1.170A–16(c) and § 1.170A–

16(d) of the proposed regulations 

generally apply to deductions claimed 

for contributions of motor vehicles. 

Section 1.170A–16(c)(4) and § 1.170A–

16(d)(2)(iii) explain the substantiation 

requirements for contributions of motor 

vehicles described in section 

170(f)(12)(A)(ii) (vehicles that the donee 

organization sells without any 

significant intervening use or material 

improvement). These substantiation 

requirements are in addition to the 

requirements imposed in section 

170(f)(12), as added by section 884 of 

the Jobs Act. 

Section 170(f)(11)(A)(ii)(II), as added 

by the PPA, provides that the 

requirements of sections 170(f)(11)(B), 

(C), and (D) do not apply if the donor 

shows that the failure to meet these 

requirements is due to reasonable cause 

and not to willful neglect. Section 

170(f)(11)(H) provides that the Secretary 

may provide that some or all of the 

requirements of section 170(f)(11) do 

not apply in appropriate cases. The 

proposed regulations provide that, to 

satisfy the ‘‘reasonable cause’’ exception 

under section 170(f)(11)(A)(ii)(II), the 

donor must submit with the return a 

detailed explanation of why the failure 

to comply was due to reasonable cause 

and not to willful neglect, and must 

have timely obtained a 

contemporaneous written 

acknowledgment and a qualified 

appraisal, if applicable. The proposed 

regulations supersede § 1.170A–

13(c)(4)(H), which provides that a 

taxpayer who fails to file an appraisal 

summary (Form 8283) with the return is 

permitted to provide it within 90 days 

of a request from the IRS, and the 

deduction will be allowed if the donor’s 

original failure to file the appraisal 

summary is a ‘‘good faith omission.’’

Consistent with the Congressional 

purpose for enacting section 170(f)(11) 

of reducing valuation abuses, the IRS 

and the Treasury Department anticipate 

that the ‘‘reasonable cause’’ exception 

will be strictly construed to apply only 

when the donor meets the requirements 

for the exception as specified in the 

regulations. 

IV. New Requirements for Qualified 

Appraisals and Qualified Appraisers 

New definitions of qualified appraisal 

and qualified appraiser, taking into 

account the PPA definitions of these 

terms in section 170(f)(11)(E), are 

provided in proposed § 1.170A–17. 

Some new terms to implement these 

new definitions are also included. 

A. Qualified Appraisal 

In proposed § 1.170A–17(a), the 

proposed regulations provide that a 

qualified appraisal means an appraisal 

document that is prepared by a qualified 

appraiser in accordance with generally 

accepted appraisal standards. Generally 

accepted appraisal standards are 

defined in the proposed regulations as 

the substance and principles of the 

Uniform Standards of Professional 

Appraisal Practice (USPAP), as 

developed by the Appraisal Standards 

Board of the Appraisal Foundation. See 

Title XI of the Financial Institutions 

Reform, Recovery, and Enforcement Act 

of 1989, Public Law 101–73, 103 Stat. 

183 (12 U.S.C. 3331–3351). The 

proposed regulations are similar to 

section 3.02(2) of Notice 2006–96, 

except that the proposed regulations 

require compliance with the substance 

and principles of USPAP. 

Commenters suggested requiring that 

appraisal documents be ‘‘in accordance 

with published appraisal standards of 

national professional appraisal 

credentialing organizations,’’ including 

references to certain other specific 

standards such as the Uniform 

Appraisal Standards for Federal Land 

Acquisitions, and requiring appraisers 

to include specific items in an appraisal, 

such as all sales of the contributed 

property within 18 months of the 

appraisal date. The IRS and the 

Treasury Department believe the 

‘‘substance and principles of USPAP’’ is 

broad enough to include these 

suggestions. One commenter suggested 

that generally accepted appraisal 

standards are satisfied by an appraisal 

issued by a corporation or company that 

is regularly engaged in the business of 

producing appraisals, relies on the 

services of specialist departments, is 

affiliated with an auction house, dealer 

or association of dealers that conducts at 

least 100 auctions or sales per year, and 

regularly conducts appraisals for estate, 

income and/or charitable donation 

purposes. This suggestion was not 

incorporated in the proposed 

regulations because it does not contain 

any ‘‘appraisal standards.’’

Application of the ‘‘substance and 

principles of USPAP’’ rule provided in 

the proposed regulations may be 

illustrated by the following situation. 

The IRS is aware that some appraisers 

of historic conservation easements have 

stated that local ordinances restricting 

modifications of a fac ̧ade should be 

disregarded because local governments 

do not enforce these ordinances. Under 

applicable substance and principles of 

USPAP, an appraiser must identify and 

analyze any known restrictions, 

ordinances, or similar items, and the 

likelihood of any modification to those 

restrictions, in formulating a value 

opinion. For example, see USPAP 

Standards Rules 1–2(e)(iv), 1–3(a), and 

2–2(vi). An appraisal that does not take 

into account a local ordinance is not 

consistent with the substance and 

principles of USPAP. See also § 1.170A–

14(h)(3)(ii). 

In addition, some commenters 

requested a specific reference to highest 

and best use in the proposed 

regulations. This suggestion was not 

incorporated in the proposed 

regulations because USPAP Standards 

Rule 1–3(b) requires an appraiser to 

‘‘develop an opinion of the highest and 

best use of the real estate’’ when it is 

‘‘necessary for credible assignment 

results in developing a market value 

opinion.’’ An appraisal that does not 

include a development of highest and 

best use when required by USPAP is not 

consistent with the substance and 

principles of USPAP. 

The proposed regulations also clarify 

the current rules. For example, the 

current regulations require an appraisal 

to be made no earlier than 60 days 

before the contribution date. Under the 

proposed regulations, the valuation 

effective date, which is the date to 

which the value opinion applies, 

generally must be the date of the 

contribution. In cases where the 

appraisal is prepared 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. The date the appraiser 

signs the appraisal report (appraisal 

report date) must be 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 is claimed or 

reported. As under current regulations, 

if the deduction is claimed for the first 

time on an amended return, the 

appraisal report date must be no later 

than the date the amended return is 

filed. 

Several commenters requested 

clarification of when a contribution is 

‘‘made’’ for purposes of determining the 

proper year of the deduction and the 

timeliness of the appraisal. Under 


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45912 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Proposed Rules 

§ 1.170A–1(b) of the current regulations, 

generally a contribution is made at the 

time delivery is effected. The IRS and 

the Treasury Department invite 

comments about when the contribution 

should be treated as ‘‘made’’ for section 

170 purposes if a donor contributes a 

conservation easement to a qualified 

organization in a jurisdiction where a 

completed transfer requires execution, 

delivery, and recording of the transfer 

documents in the local governmental 

office, and the parties deliver the fully 

executed easement documents to the 

appropriate governmental office for 

recording in one year, but the 

documents are not recorded until the 

following year. 

One commenter asked the IRS to state 

that an appraisal prepared by an 

insurance or real estate broker is not a 

qualified appraisal. This 

recommendation was not adopted in the 

proposed regulations because an 

insurance or real estate broker’s 

appraisal, like any other appraisal, is a 

qualified appraisal if it meets all of the 

requirements for a qualified appraisal by 

a qualified appraiser. 

B. Qualified Appraiser 

Section 1.170A–17(b) of the proposed 

regulations incorporates many of the 

requirements from the current 

regulations, but certain other provisions 

were modified. For example, the 

appraiser declarations required in the 

appraisal and on Form 8283 have been 

modified. In addition, the proposed 

regulations contain several new terms 

implementing the PPA requirements of 

a qualified appraiser under section 

170(f)(11)(E)(ii) and (iii). In general, 

under the proposed regulations, a 

‘‘qualified appraiser’’ must be an 

individual with verifiable education and 

experience in valuing the relevant type 

of property for which the appraisal is 

performed. 

The PPA refers to two types of 

education and experience: Minimum 

education and experience in section 

170(f)(11)(E)(ii)(I) to establish 

qualification as an appraiser generally, 

and verifiable education and experience 

in valuing the type of property subject 

to the appraisal in section 

170(f)(11)(E)(iii)(I) to establish 

qualification as an appraiser for a 

particular appraisal. The IRS and the 

Treasury Department believe that it is 

sufficient for an appraiser to satisfy the 

more stringent requirement of verifiable 

education and experience in valuing the 

type of property subject to the appraisal. 

Satisfaction of that requirement will 

also satisfy the minimum education and 

experience requirement of section 

170(f)(11)(E)(ii)(I). The proposed 

regulations provide that an individual 

has verifiable education and experience 

if the individual has successfully 

completed professional or college-level 

coursework in valuing the relevant type 

of property and has two or more years 

experience in valuing that type of 

property. 

Furthermore, because significant 

education and experience are required 

to obtain a designation from a 

recognized professional appraiser 

organization, under the proposed 

regulations appraisers with these 

designations are deemed to have 

demonstrated sufficient verifiable 

education and experience. One 

commenter asked about the 

qualifications of organizations that 

award designations and suggested that a 

recognized professional appraisal 

organization should be one that, among 

other things, offers comprehensive 

educational programs in USPAP and 

principles of valuation, and requires 

qualification to be demonstrated 

through written exams and peer 

reviews. The proposed regulations 

incorporate some of these principles in 

the definition of education and 

experience in valuing the relevant type 

of property. 

A number of comments focused on 

education and experience. Several 

commenters suggested that an 

appraiser’s evidence of education and 

experience should be required to be 

verifiable as provided in section 

170(f)(11)(E)(iii)(I). The proposed 

regulations incorporate this suggestion 

by requiring a statement in the appraisal 

of the appraiser’s specified education 

and experience in valuing the relevant 

type of property. The proposed 

regulations also require the appraiser to 

complete coursework in valuing the 

category of property that is customary in 

the appraisal field for an appraiser to 

value. 

One commenter indicated that some 

of its appraiser employees may have 

significant experience but lack formal 

education, and suggested that 

‘‘education and experience’’ be 

interpreted as ‘‘education or 

experience.’’ The commenter also asked 

that the ‘‘education and experience’’

requirement be applied to a group of 

appraisers rather than individually. The 

proposed regulations do not adopt these 

suggestions because they are contrary to 

the section 170(f)(11)(E) requirement 

that the person who signs the appraisal 

report be an individual with the 

requisite education and experience in 

valuing the relevant type of property. 

However, the proposed regulations 

define education broadly to include 

coursework obtained in an employment 

context, provided it is similar to an 

educational program of an educational 

institution or a generally recognized 

professional appraisal organization. 

Section 3.03(3)(a)(ii) of Notice 2006–

96 provides that, for real estate 

appraisers, education and experience 

are sufficient if the appraiser holds a 

license or certificate to value the 

relevant type of property in the state in 

which the property is located. This 

provision was not incorporated in the 

proposed regulations, which set forth 

more specific requirements applicable 

to all appraisers. 

Several commenters asked for a 

definition of ‘‘types of property’’ for 

purposes of identifying the required 

education and experience. More 

education and experience may be 

necessary and available for some types 

of property than for others. Therefore, 

the proposed regulations provide that 

the relevant type of property is 

determined by what is customary in the 

appraisal profession. The IRS and the 

Treasury Department request 

suggestions for categorizing types of 

property that would be helpful in 

determining the qualification of 

appraisers, for purposes of both the 

education and experience requirements. 

The IRS and the Treasury Department 

believe that the term ‘‘regularly 

performs appraisals for which the 

individual receives compensation’’

under section 170(f)(11)(E)(ii)(II) is 

generally encompassed by the 

experience requirement of section 

170(f)(11)(E)(iii)(I) and does not need to 

be separately met. One corporate 

commenter was concerned that its 

individual employees could never be 

qualified appraisers, because the 

corporation receives the compensation, 

not the individual employees. Similar 

comments were received from otherwise 

qualified individual appraisers who do 

not regularly receive compensation. The 

proposed regulations address both of 

these concerns by not separately stating 

a compensation requirement. 

Expressing concerns about identity 

theft, some commenters requested 

elimination of the requirements of 

supplying the appraiser’s taxpayer 

identification number on Form 8283 

and in the appraisal, as currently 

required under §§ 1.170A–13(c)(3)(ii)(E) 

and 1.170A–13(c)(4)(ii)(I). The concern 

arises from appraisers who do not have 

a taxpayer identification number other 

than a social security number. The 

proposed regulations continue to 

require this information because, 

pursuant to § 301.6109–1(a)(1)(ii)(D) of 

the Procedure and Administration 

Regulations, an appraiser may obtain an 

employer identification number even if 


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the appraiser does not have employees. 

This number may be obtained by 

completing Form SS–4, ‘‘Application for 

Employer Identification Number.’’ See 

Pub. 1635, ‘‘Understanding Your 

Employer Identification Number.’’ If an 

appraiser is employed by a firm, the 

firm’s employer identification number 

should be used. 

Taxpayers are reminded that the IRS 

may challenge the amount of a claimed 

deduction, even if the donor 

substantiates the amount of the 

deduction with a qualified appraisal 

prepared by a qualified appraiser. 

C. Clothing and Household Items 

Section 1.170A–18 of the proposed 

regulations implements section 

170(f)(16), which provides that no 

deduction is allowed for any 

contribution of clothing or a household 

item unless it is in good used condition 

or better. The purpose of this provision 

relates to ensuring that donated clothing 

and household items are ‘‘of meaningful 

use to charitable organizations.’’ Joint 

Committee on Taxation, Technical 

Explanation of H.R. 4, the ‘‘Pension 

Protection Act of 2006’’ (Aug. 3, 2006). 

The IRS and the Treasury Department 

are aware that a number of charities 

publish donation guidelines listing 

items the charity will and will not 

accept, and believe that the guidelines 

are helpful in ensuring that charities 

receive donations of items that are of 

meaningful use to the charity. The IRS 

and the Treasury Department request 

comments regarding how donation 

guidelines published by a charity may 

relate to the ‘‘good used condition’’

requirement in section 170(f)(16). 

Under the proposed regulations, no 

deduction is allowed unless the clothing 

or household item is in good used 

condition or better at the time of the 

contribution. The proposed regulations 

also provide that this rule does not 

apply to a contribution of a single item 

of clothing or a household item for 

which a donor claims a deduction of 

more than $500 if the donor submits a 

qualified appraisal with the return on 

which the deduction is claimed. Several 

commenters questioned whether a 

qualified appraisal is required for any 

contribution of an item of clothing or a 

household item with a claimed value 

over $500. If the item is not in good 

used condition or better and a 

deduction in excess of $500 is claimed, 

the taxpayer must obtain a qualified 

appraisal and file a completed Form 

8283 (Section B) with the return on 

which the deduction is claimed. If the 

item is in good used condition or better 

and a deduction in excess of $500 is 

claimed, the taxpayer must file a 

completed Form 8283 (Section A or B 

depending on the type of contribution 

and claimed amount), but a qualified 

appraisal is required only if the claimed 

contribution amount exceeds $5,000. 

If the donor claims a deduction of less 

than $250, § 1.170A–16(a) of the 

proposed regulations requires that the 

donor obtain a receipt from the donee or 

maintain reliable written records of the 

contribution. A reliable written record 

for a contribution of clothing or a 

household item must include a 

description of the condition of the item. 

If the donor claims a deduction of $250 

or more, the donor must obtain from the 

donee a receipt that meets the 

requirements of section 170(f)(8) 

(contemporaneous written 

acknowledgment). 

Proposed Effective/Applicability Date 

These proposed regulations are 

proposed to apply to contributions 

occurring after the date these 

regulations are published as final 

regulations in the Federal Register. 

Taxpayers should continue to comply 

with the recordkeeping and return 

requirements in § 1.170A–13 of the 

existing regulations to the extent those 

provisions are not superseded by the 

Jobs Act or the PPA. 

Special Analyses 

It has been determined that this notice 

of proposed rulemaking is not a 

significant regulatory action as defined 

in Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

is hereby certified that these regulations 

will not have a significant economic 

impact on a substantial number of small 

entities. Therefore, a regulatory 

flexibility analysis under the Regulatory 

Flexibility Act (5 U.S.C. chapter 6) is 

not required. This certification is based 

on the belief of the IRS and the Treasury 

Department that these regulations 

reduce the burden on taxpayers by 

clarifying and simplifying the existing 

substantiation and reporting 

requirements for charitable 

contributions. Furthermore, to the 

extent these regulations contain 

requirements that may impact small 

entities that are not contained in the 

current substantiation and reporting 

rules, those additional requirements are 

based on statutory changes to the rules 

that are being incorporated into the 

regulations. Pursuant to section 7805(f) 

of the Internal Revenue Code, this 

notice of proposed rulemaking has been 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small businesses. 

Comments and Requests for a Public 

Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

written comments (a signed original and 

eight (8) copies) or electronic comments 

that are submitted timely to the IRS. The 

IRS and the Treasury Department 

request comments on the clarity of the 

proposed rules and how they can be 

made easier to understand. All 

comments will be available for public 

inspection and copying. A public 

hearing will be scheduled if requested 

in writing by any person that timely 

submits comments. If a public hearing is 

scheduled, notice of the date, time, and 

place for the public hearing will be 

published in the Federal Register. 

Drafting Information 

The principal author of this regulation 

is Susan J. Kassell of the Office of 

Associate Chief Counsel (Income Tax 

and Accounting). Other personnel from 

the IRS and the Treasury Department 

participated in its development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Partial Withdrawal of Proposed 

Regulations 

Accordingly, under the authority of 

26 U.S.C. 7805, § 1.170A–13 of the 

notice of proposed rulemaking (LR–83–

87) that was published in the Federal 

Register on Thursday May 5, 1988 (53 

FR 16156) is withdrawn. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 1 is 

proposed to be amended as follows: 

PART 1—INCOME TAXES 

Paragraph 1. The authority citation 

for part 1 is amended by adding entries 

in numerical order to read as follows: 

Authority: 26 U.S.C. 7805 * * * 

§ 1.170A–15 also issued under 26 U.S.C. 

170(a)(1). § 1.170A–16 also issued under 26 

U.S.C. 170(a)(1) and 170(f)(11). § 1.170A–17 

also issued under 26 U.S.C. 170(a)(1) and 

170(f)(11). § 1.170A–18 also issued under 26 

U.S.C. 170(a)(1). 

§§ 1.170–0 and 1.170–2 [Removed] 

Par. 2. Sections 1.170–0 and 1.170–2 

are removed. 

§ 1.170A–13 [Amended] 

Par. 3. In § 1.170A–13, paragraphs 

(a)(3), (b)(3)(i)(B), (b)(4), and (d) are 

removed. 

Par. 4. Section 1.170A–15 is added to 

read as follows: 


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§ 1.170A–15 Substantiation requirements 

for charitable contribution of a cash, check, 

or other monetary gift. 

(a) In general—(1) Bank record or 

written communication required. No 

deduction is allowed under section 

170(a) for a charitable contribution in 

the form of a cash, check, or other 

monetary gift (as described in paragraph 

(b)(1) of this section) unless the donor 

substantiates the deduction with a bank 

record (as described in paragraph (b)(2) 

of this section) or a written 

communication (as described in 

paragraph (b)(3) of this section) from the 

donee showing the name of the donee, 

the date of the contribution, and the 

amount of the contribution. 

(2) Additional substantiation required 

for contributions of $250 or more. No 

deduction is allowed under section 

170(a) for any contribution of $250 or 

more unless the donor substantiates the 

contribution with a contemporaneous 

written acknowledgment (as described 

in section 170(f)(8) and § 1.170A–13(f)) 

from the donee. 

(3) Single document may be used. The 

requirements of paragraphs (a)(1) and 

(a)(2) of this section may be met by a 

single document that contains all the 

information required by paragraphs 

(a)(1) and (a)(2) of this section, if the 

single document is obtained by the 

donor no later than the date prescribed 

by paragraph (c) of this section. 

(b) Terms—(1) Monetary gift includes 

a transfer of a gift card redeemable for 

cash, and a payment made by credit 

card, electronic fund transfer (as 

described in section 5061(e)(2)), an 

online payment service, or payroll 

deduction. 

(2) Bank record includes a statement 

from a financial institution, an 

electronic fund transfer receipt, a 

canceled check, a scanned image of both 

sides of a canceled check obtained from 

a bank Web site, or a credit card 

statement. 

(3) Written communication includes 

electronic mail correspondence. 

(c) Deadline for receipt of 

substantiation. The substantiation 

described in paragraph (a) of this 

section must be received by the donor 

on or before the earlier of—

(1) The date the donor files the 

original return for the taxable year in 

which the contribution was made; or 

(2) The due date (including 

extensions) for filing the donor’s 

original return for that year. 

(d) Distributing organizations as 

donees—(1) In general. The following 

organizations are treated as donees for 

purposes of section 170(f)(17) and 

paragraph (a) of this section, even if the 

organization (pursuant to the donor’s 

instructions or otherwise) distributes 

the amount received to one or more 

organizations described in section 

170(c): 

(i) An organization described in 

section 170(c). 

(ii) An organization described in 5 

CFR 950.105 (a Principal Combined 

Fund Organization for purposes of the 

Combined Federal Campaign) and 

acting in that capacity. 

(2) Contributions made by payroll 

deduction. In the case of a charitable 

contribution made by payroll deduction, 

a donor is treated as meeting the 

requirements of section 170(f)(17) and 

paragraph (a) of this section if, no later 

than the date described in paragraph (c) 

of this section, the donor obtains—

(i) A pay stub, Form W–2, ‘‘Wage and 

Tax Statement,’’ or other employerfurnished document that sets forth the 

amount withheld during the taxable 

year for payment to a donee; and 

(ii) A pledge card or other document 

prepared by or at the direction of the 

donee that shows the name of the 

donee. 

(e) Substantiation of out-of-pocket 

expenses. Paragraph (a)(1) of this 

section does not apply to a donor who 

incurs unreimbursed expenses of less 

than $250 incident to the rendition of 

services, within the meaning of 

§ 1.170A–1(g). For substantiation of 

unreimbursed out-of-pocket expenses of 

$250 or more, see § 1.170A–13(f)(10). 

(f) Charitable contributions made by 

partnership or S corporation. If a 

partnership or an S corporation makes 

a charitable contribution, the 

partnership or S corporation is treated 

as the donor for purposes of section 

170(f)(17) and paragraph (a) of this 

section. 

(g) Transfers to certain trusts. The 

requirements of section 170(f)(17) and 

paragraph (a)(1) of this section do not 

apply to a transfer of a cash, check, or 

other monetary gift to a trust described 

in section 170(f)(2)(B), a charitable 

remainder annuity trust (as defined in 

section 664(d)(1)), or a charitable 

remainder unitrust (as defined in 

section 664(d)(2) or (d)(3) or § 1.664–

3(a)(1)(i)(b)). The requirements of 

section 170(f)(17) and paragraphs (a)(1) 

and (a)(2) of this section do apply, 

however, to a transfer to a pooled 

income fund (as defined in section 

642(c)(5)). For contributions of $250 or 

more, see section 170(f)(8) and 

§ 1.170A–13(f)(13). 

(h) Effective/applicability date. This 

section applies to contributions made 

after the date these regulations are 

published as final regulations in the 

Federal Register. 

Par. 5. Section 1.170A–16 is added to 

read as follows: 

§ 1.170A–16 Substantiation and reporting 

requirements for noncash charitable 

contributions. 

(a) Substantiation of charitable 

contributions of less than $250—(1) 

Individuals, partnerships, and certain 

corporations required to obtain receipt. 

Except as provided in paragraph (a)(2) 

of this section, no deduction is allowed 

under section 170(a) for a noncash 

charitable contribution of less than $250 

by an individual, partnership, S 

corporation, or C corporation that is a 

personal service corporation or closely 

held corporation unless the donor 

maintains for each contribution a 

receipt from the donee showing the 

following information: 

(i) The name and address of the 

donee; 

(ii) The date of the contribution; 

(iii) A description of the property in 

sufficient detail under the 

circumstances (taking into account the 

value of the property) for a person who 

is not generally familiar with the type of 

property to ascertain that the described 

property is the contributed property; 

and 

(iv) In the case of securities, the name 

of the issuer, the type of security, and 

whether the securities are publicly 

traded securities within the meaning of 

§ 1.170A–13(c)(7)(xi). 

(2) Substitution of reliable written 

records—(i) In general. If it is 

impractical to obtain a receipt (for 

example, a donor deposits canned food 

at a donee’s unattended drop site), the 

donor may satisfy the recordkeeping 

rules of this paragraph (a)(2)(i) by 

maintaining reliable written records (as 

described in paragraphs (a)(2)(ii) and 

(a)(2)(iii) of this section) for the 

contributed property. 

(ii) Reliable written records. The 

reliability of written records is to be 

determined on the basis of all of the 

facts and circumstances of a particular 

case, including the contemporaneous 

nature of the writing evidencing the 

contribution. 

(iii) Contents of reliable written 

records. Reliable written records must 

include—

(A) The information required by 

paragraph (a)(1) of this section; 

(B) The fair market value of the 

property on the date the contribution 

was made; 

(C) The method used in determining 

the fair market value; and 

(D) In the case of a contribution of 

clothing or a household item as defined 

in § 1.170A–18(c), the condition of the 

item. 


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(3) Additional substantiation rules 

may apply. For additional 

substantiation rules, see paragraph (f) of 

this section. 

(b) Substantiation of charitable 

contributions of $250 or more but not 

more than $500. No deduction is 

allowed under section 170(a) for a 

noncash charitable contribution of $250 

or more but not more than $500 unless 

the donor substantiates the contribution 

with a contemporaneous written 

acknowledgment (as described in 

section 170(f)(8) and § 1.170A–13(f)). 

(c) Substantiation of charitable 

contributions of more than $500 but not 

more than $5,000—(1) In general. No 

deduction is allowed under section 

170(a) for a noncash charitable 

contribution of more than $500 but not 

more than $5,000 unless the donor 

substantiates the contribution with a 

contemporaneous written 

acknowledgment (as described in 

section 170(f)(8) and § 1.170A–13(f)) 

and meets the applicable requirements 

of this section. 

(2) Individuals, partnerships, and 

certain corporations also required to file 

Form 8283 (Section A). No deduction is 

allowed under section 170(a) for a 

noncash charitable contribution of more 

than $500 but not more than $5,000 by 

an individual, partnership, S 

corporation, or C corporation that is a 

personal service corporation or closely 

held corporation unless the donor—

(i) Substantiates the contribution with 

a contemporaneous written 

acknowledgment (as described in 

section 170(f)(8) and § 1.170A–13(f)); 

and 

(ii) Completes Form 8283 (Section A), 

‘‘Noncash Charitable Contributions’’ (as 

provided in paragraph (c)(3) of this 

section), or a successor form, and files 

it with the return on which the 

deduction is claimed. 

(3) Completion of Form 8283 (Section 

A). A completed Form 8283 (Section A) 

includes—

(i) The donor’s name and taxpayer 

identification number (social security 

number if the donor is an individual or 

employer identification number if the 

donor is a partnership or corporation); 

(ii) The name and address of the 

donee; 

(iii) The date of the contribution; 

(iv) The following information about 

the contributed property: 

(A) A description of the property in 

sufficient detail under the 

circumstances (taking into account the 

value of the property) for a person who 

is not generally familiar with the type of 

property to ascertain that the described 

property is the contributed property; 

(B) In the case of real or personal 

property, the condition of the property; 

(C) In the case of securities, the name 

of the issuer, the type of security, and 

whether the securities are publicly 

traded securities within the meaning of 

§ 1.170A–13(c)(7)(xi); and 

(D) The fair market value of the 

property on the date the contribution 

was made and the method used in 

determining the fair market value; 

(v) The manner of acquisition (for 

example, by purchase, gift, bequest, 

inheritance, or exchange), and the 

approximate date of acquisition of the 

property by the donor (except that in the 

case of a contribution of publicly traded 

securities as defined in § 1.170A–

13(c)(7)(xi), a representation that the 

donor held the securities for more than 

one year is sufficient) or, if the property 

was created, produced, or manufactured 

by or for the donor, the approximate 

date the property was substantially 

completed; 

(vi) The cost or other basis, adjusted 

as provided by section 1016, of the 

property (except that the cost or basis is 

not required for contributions of 

publicly traded securities (as defined in 

§ 1.170A–13(c)(7)(xi)) that if sold on the 

contribution date would have resulted 

in long term capital gain); 

(vii) In the case of tangible personal 

property, whether the donee has 

certified it for a use related to the 

purpose or function constituting the 

donee’s basis for exemption under 

section 501 (or in the case of a 

governmental unit, an exclusively 

public purpose); and 

(viii) Any other information required 

by Form 8283 (Section A) or the 

instructions to Form 8283 (Section A). 

(4) Additional requirement for certain 

motor vehicle contributions. In the case 

of a contribution of a qualified vehicle 

described in section 170(f)(12)(A)(ii) for 

which an acknowledgment under 

section 170(f)(12)(B)(iii) is provided to 

the IRS by the donee organization, the 

donor must attach a copy of the 

acknowledgment to the Form 8283 

(Section A) for the return on which the 

deduction is claimed. 

(5) Additional substantiation rules 

may apply. For additional 

substantiation rules, see paragraph (f) of 

this section. 

(d) Substantiation of charitable 

contributions of more than $5,000—(1) 

In general. Except as provided in 

paragraph (d)(2) of this section, no 

deduction is allowed under section 

170(a) for a noncash charitable 

contribution of more than $5,000 unless 

the donor—

(i) Substantiates the contribution with 

a contemporaneous written 

acknowledgment (as described in 

section 170(f)(8) and § 1.170A–13(f)); 

(ii) Obtains a qualified appraisal (as 

defined in § 1.170A–17(a)(1)) prepared 

by a qualified appraiser (as defined in 

§ 1.170A–17(b)(1)); and 

(iii) Completes Form 8283 (Section B) 

(as provided in paragraph (d)(3) of this 

section), or a successor form, and files 

it with the return on which the 

deduction is claimed. 

(2) Exception for certain noncash 

contributions. A qualified appraisal is 

not required, and a completed Form 

8283 (Section A) (containing the 

information required in paragraph (c)(3) 

of this section) meets the requirements 

of paragraph (d)(1)(iii) of this section for 

contributions of—

(i) Publicly traded securities as 

defined in § 1.170A–13(c)(7)(xi); 

(ii) Property described in section 

170(e)(1)(B)(iii)(certain intellectual 

property); 

(iii) A qualified vehicle described in 

section 170(f)(12)(A)(ii) for which an 

acknowledgment under section 

170(f)(12)(B)(iii) is provided to the IRS 

by the donee organization and attached 

to the Form 8283 (Section A) by the 

donor; and 

(v) Property described in section 

1221(a)(1) (inventory and property held 

by the donor primarily for sale to 

customers in the ordinary course of the 

donor’s trade or business). 

(3) Completed Form 8283 (Section B). 

A completed Form 8283 (Section B) 

includes—

(i) The donor’s name and taxpayer 

identification number (social security 

number if the donor is an individual or 

employer identification number if the 

donor is a partnership or corporation); 

(ii) The donee’s name, address, 

taxpayer identification number, and 

signature, the date signed by the donee, 

and the date the donee received the 

property; 

(iii) The appraiser’s name, address, 

taxpayer identification number, 

appraiser declaration (as described in 

paragraph (d)(4) of this section), 

signature, and the date signed by the 

appraiser; 

(iv) The following information about 

the contributed property: 

(A) The fair market value on the 

valuation effective date (as defined in 

§ 1.170A–17(a)(5)(i)). 

(B) A description in sufficient detail 

under the circumstances (taking into 

account the value of the property) for a 

person who is not generally familiar 

with the type of property to ascertain 

that the described property is the 

contributed property. 


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(C) In the case of real or tangible 

personal property, the condition of the 

property; 

(v) The manner of acquisition (for 

example, by purchase, gift, bequest, 

inheritance, or exchange), and the 

approximate date of acquisition of the 

property by the donor, or, if the 

property was created, produced, or 

manufactured by or for the donor, the 

approximate date the property was 

substantially completed; 

(vi) The cost or other basis, adjusted 

as provided by section 1016; 

(vii) A statement explaining whether 

the charitable contribution was made by 

means of a bargain sale and, if so, the 

amount of any consideration received 

from the donee for the contribution; and 

(viii) Any other information required 

by Form 8283 (Section B) or the 

instructions to Form 8283 (Section B). 

(4) Appraiser declaration. The 

appraiser declaration referred to in 

paragraph (d)(3)(iii) of this section must 

include the following statement: ‘‘I 

understand that my appraisal will be 

used in connection with a return or 

claim for refund. I also understand that, 

if a substantial or gross valuation 

misstatement of the value of the 

property claimed on the return or claim 

for refund results from my appraisal, I 

may be subject to a penalty under 

section 6695A of the Internal Revenue 

Code, as well as other applicable 

penalties. I affirm that I have not been 

barred from presenting evidence or 

testimony before the Department of the 

Treasury or the Internal Revenue 

Service pursuant to 31 U.S.C. section 

330(c).’’

(5) Donee signature—(i) Person 

authorized to sign. The person who 

signs Form 8283 for the donee must be 

either an official authorized to sign the 

tax or information returns of the donee, 

or a person specifically authorized to 

sign Forms 8283 by that official. In the 

case of a donee that is a governmental 

unit, the person who signs Form 8283 

for the donee must be an official of the 

governmental unit. 

(ii) Effect of donee signature. The 

signature of the donee on Form 8283 

does not represent concurrence in the 

appraised value of the contributed 

property. Rather, it represents 

acknowledgment of receipt of the 

property described in Form 8283 on the 

date specified in Form 8283 and that the 

donee understands the information 

reporting requirements imposed by 

section 6050L and § 1.6050L–1. 

(iii) Certain information not required 

on Form 8283 before donee signs. Before 

Form 8283 is signed by the donee, Form 

8283 must be completed (as described 

in paragraph (d)(3) of this section), 

except that it is not required to contain 

the following: 

(A) Information about the qualified 

appraiser or the appraiser declaration. 

(B) The manner or date of acquisition. 

(C) The cost or other basis of the 

property. 

(D) The appraised fair market value of 

the contributed property. 

(E) The amount claimed as a 

charitable contribution. 

(6) Additional substantiation rules 

may apply. For additional 

substantiation rules, see paragraph (f) of 

this section. 

(e) Substantiation of noncash 

charitable contributions of more than 

$500,000—(1) In general. Except as 

provided in paragraph (e)(2) of this 

section, no deduction is allowed under 

section 170(a) for a noncash charitable 

contribution of more than $500,000 

unless the donor—

(i) Substantiates the contribution with 

a contemporaneous written 

acknowledgment (as described in 

section 170(f)(8) and § 1.170A–13(f)); 

(ii) Obtains a qualified appraisal (as 

defined in § 1.170A–17(a)(1)) prepared 

by a qualified appraiser (as defined in 

§ 1.170A–17(b)(1)); 

(iii) Completes (as described in 

paragraph (d)(3) of this section) Form 

8283 (Section B) and files it with the 

return on which the deduction is 

claimed; and 

(iv) Attaches the qualified appraisal of 

the property to the return on which the 

deduction is claimed. 

(2) Exception for certain noncash 

contributions. For contributions of 

property described in paragraph (d)(2) 

of this section, a qualified appraisal is 

not required, and a completed Form 

8283 (Section A) (containing the 

information required in paragraph (c)(3) 

of this section) meets the requirements 

of paragraph (e)(1)(iii) of this section. 

(3) Additional substantiation rules 

may apply. For additional 

substantiation rules, see paragraph (f) of 

this section. 

(f) Additional substantiation 

requirements that may be applicable to 

any noncash contribution—(1) Signed 

Form 8283 furnished by donor to donee. 

A donor who presents a Form 8283 to 

a donee for signature must furnish to the 

donee a copy of Form 8283 as signed by 

the donee. 

(2) Number of Forms 8283—(i) In 

general. For each item of contributed 

property for which a Form 8283 is 

required under paragraphs (c), (d), or (e) 

of this section, a donor must attach a 

separate Form 8283 to the return on 

which the deduction for the item is 

claimed. 

(ii) Exception for similar items. The 

donor may attach a single Form 8283 for 

all similar items of property (as defined 

in § 1.170A–13(c)(7)(iii)) contributed to 

the same donee during the donor’s 

taxable year, if the donor includes on 

Form 8283 the information required by 

paragraph (c)(3) or (d)(3) of this section 

for each item of property. 

(3) Substantiation requirements for 

carryovers of noncash contribution 

deductions. The rules in paragraphs 

(c)(2)(ii), (d)(1)(iii), (d)(2), (e)(1)(iii) and 

(e)(1)(iv) of this section (regarding 

substantiation that must be submitted 

with a return) apply to the return for 

any carryover year under section 170(d). 

(4) Partners and S corporation 

shareholders—(i) Form 8283 must be 

provided to partners and S corporation 

shareholders. If the donor is a 

partnership or S corporation, the donor 

must provide a copy of the completed 

Form 8283 to every partner or 

shareholder who receives an allocation 

of a charitable contribution deduction 

under section 170 for the property 

described in Form 8283. 

(ii) Partners and S corporation 

shareholders must attach Form 8283 to 

return. A partner of a partnership or 

shareholder of an S corporation who 

receives an allocation of a deduction 

under section 170 for a charitable 

contribution of property to which 

paragraphs (c), (d), or (e) of this section 

applies must attach a copy of the 

partnership’s or S corporation’s 

completed Form 8283 to the return on 

which the deduction is claimed. 

(5) Determination of deduction 

amount for purposes of substantiation 

rules—(i) In general. In determining 

whether the amount of a donor’s 

deduction exceeds the amounts set forth 

in section 170(f)(11)(B) (noncash 

contributions exceeding $500), 

170(f)(11)(C) (noncash contributions 

exceeding $5,000), or 170(f)(11)(D) 

(noncash contributions exceeding 

$500,000), the rules of paragraphs 

(f)(5)(ii) and (f)(5)(iii) of this section 

apply. 

(ii) Similar items of property must be 

aggregated. Under section 170(f)(11)(F), 

the donor must aggregate the amount 

claimed as a deduction for all similar 

items of property (as defined in 

§ 1.170A–13(c)(7)(iii)) contributed 

during the taxable year. For rules 

regarding the number of qualified 

appraisals and Forms 8283 required if 

similar items of property are 

contributed, see §§ 1.170A–

13(c)(3)(iv)(A) and 1.170A–

13(c)(4)(iv)(B). 

(iii) For contributions of certain 

inventory and scientific property, excess 

of amount claimed over cost of goods 

sold taken into account. (A) In general. 

In determining the amount of a donor’s 


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contribution of property to which 

section 170(e)(3) or (4) applies, the 

donor must take into account only the 

excess of the amount claimed as a 

deduction over the amount that would 

have been treated as the cost of goods 

sold if the donor had sold the 

contributed property to the donee. 

(B) Example. The following example 

illustrates the rule of this paragraph 

(f)(5)(iii): 

Example. X Corporation makes a 

contribution to which section 170(e)(3) 

applies of clothing for the care of the needy. 

The cost of the property to X Corporation is 

$5,000, and, pursuant to section 170(e)(3)(B), 

X Corporation claims a charitable 

contribution deduction of $8,000. The 

amount taken into account for purposes of 

determining the $5,000 threshold of 

paragraph (d) of this section is $3,000 ($8,000 

¥ $5,000). 

(6) Failure due to reasonable cause. If 

a donor fails to meet the requirements 

of paragraphs (c), (d), or (e) of this 

section, the donor’s deduction will be 

disallowed unless the donor establishes 

that the failure was due to reasonable 

cause and not to willful neglect. The 

donor may establish that the failure was 

due to reasonable cause and not to 

willful neglect only if the donor—

(i) Submits with the return a detailed 

explanation that the failure to meet the 

requirements of this section was due to 

reasonable cause and not to willful 

neglect; 

(ii) Obtained a contemporaneous 

written acknowledgment (as required by 

section 170(f)(8) and § 1.170A–13(f)(3)); 

and 

(iii) Obtained a qualified appraisal (as 

defined by section 170(f)(11)(E)(i) and 

§ 1.170A–17(a)(1)) prepared by a 

qualified appraiser (as defined by 

section 170(f)(11)(E)(ii) and § 1.170A–

17(b)(1)) within the dates specified in 

§ 1.170A–17(a)(4), if required. 

(7) Additional requirement for returns 

claiming conservation easements for 

buildings in registered historic districts. 

[Reserved] 

(g) Effective/applicability date. This 

section applies to contributions made 

after the date these regulations are 

published as final regulations in the 

Federal Register. 

Par. 6. Section 1.170A–17 is added to 

read as follows: 

§ 1.170A–17 Qualified appraisal and 

qualified appraiser. 

(a) Qualified appraisal—(1) 

Definition. For purposes of section 

170(f)(11) and §§ 1.170A–16(d)(1)(ii) 

and 1.170A–16(e)(1)(ii), the term 

qualified appraisal means an appraisal 

document that is prepared by a qualified 

appraiser (as defined in paragraph (b)(1) 

of this section) in accordance with 

generally accepted appraisal standards 

(as defined in paragraph (a)(2) of this 

section) and otherwise complies with 

the requirements of this paragraph (a). 

(2) Generally accepted appraisal 

standards defined. For purposes of 

paragraph (a)(1) of this section, 

generally accepted appraisal standards 

means the substance and principles of 

the Uniform Standards of Professional 

Appraisal Practice, as developed by the 

Appraisal Standards Board of the 

Appraisal Foundation. 

(3) Contents of qualified appraisal. A 

qualified appraisal must include—

(i) The following information about 

the contributed property: 

(A) A description in sufficient detail 

under the circumstances (taking into 

account the value of the property) for a 

person who is not generally familiar 

with the type of property to ascertain 

that the appraised property is the 

contributed property. 

(B) In the case of real or personal 

tangible property, the condition of the 

property. 

(C) The valuation effective date (as 

defined in paragraph (a)(5)(i) of this 

section). 

(D) The fair market value (within the 

meaning of § 1.170A–1(c)(2)) of the 

contributed property on the valuation 

effective date; 

(ii) The terms of any agreement or 

understanding by or on behalf of the 

donor and donee that relates to the use, 

sale, or other disposition of the 

contributed property, including, for 

example, the terms of any agreement or 

understanding that—

(A) Restricts temporarily or 

permanently a donee’s right to use or 

dispose of the contributed property; 

(B) Reserves to, or confers upon, 

anyone (other than a donee or an 

organization participating with a donee 

in cooperative fundraising) any right to 

the income from the contributed 

property or to the possession of the 

property, including the right to vote 

contributed securities, to acquire the 

property by purchase or otherwise, or to 

designate the person having income, 

possession, or right to acquire; or 

(C) Earmarks contributed property for 

a particular use; 

(iii) The date (or expected date) of the 

contribution to the donee; 

(iv) The following information about 

the appraiser: 

(A) Name, address, and taxpayer 

identification number. 

(B) Qualifications to value the type of 

property being valued, including the 

appraiser’s education and experience. 

(C) If the appraiser is acting in his or 

her capacity as a partner in a 

partnership, an employee of any person 

(whether an individual, corporation, or 

partnership), 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 qualified appraiser; 

(v) The signature of the appraiser and 

the date signed by the appraiser 

(appraisal report date); 

(vi) The following declaration by the 

appraiser: ‘‘I understand that my 

appraisal will be used in connection 

with a return or claim for refund. I also 

understand that, if a substantial or gross 

valuation misstatement of the value of 

the property claimed on the return or 

claim for refund results from my 

appraisal, I may be subject to a penalty 

under section 6695A of the Internal 

Revenue Code, as well as other 

applicable penalties. I affirm that I have 

not been barred from presenting 

evidence or testimony before the 

Department of the Treasury or the 

Internal Revenue Service pursuant to 31 

U.S.C. section 330(c);’’

(vii) A statement that the appraisal 

was prepared for income tax purposes; 

(viii) The method of valuation used to 

determine the fair market value, such as 

the income approach, the market-data 

approach, or the replacement-cost-lessdepreciation approach; and 

(ix) The specific basis for the 

valuation, such as specific comparable 

sales transactions or statistical 

sampling, including a justification for 

using sampling and an explanation of 

the sampling procedure employed. 

(4) Timely appraisal report. A 

qualified appraisal must be signed and 

dated by the qualified appraiser no 

earlier than 60 days before the date of 

the contribution and no later than—

(i) The due date (including 

extensions) of the return on which the 

deduction for the contribution is first 

claimed; 

(ii) In the case of a donor that is a 

partnership or S corporation, the due 

date (including extensions) of the return 

on which the deduction for the 

contribution is first reported; or 

(iii) In the case of a deduction first 

claimed on an amended return, the date 

on which the amended return is filed. 

(5) Valuation effective date—(i) 

Definition. The valuation effective date 

is the date to which the value opinion 

applies. 

(ii) Timely valuation effective date. 

For an appraisal report dated before the 

date of the contribution (as described in 

§ 1.170A–1(b)), 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 


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45918 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Proposed Rules 

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. 

(6) Exclusion for donor knowledge of 

falsity. An appraisal is not a qualified 

appraisal for a particular contribution, 

even if the requirements of this 

paragraph (a) are met, if a reasonable 

person would conclude that the donor 

failed to disclose or misrepresented 

facts that would cause the appraiser to 

overstate the value of the contributed 

property. 

(7) Number of appraisals required. A 

donor must obtain a separate qualified 

appraisal for each item of property for 

which an appraisal is required under 

paragraphs (c), (d), or (e) of this section 

and that is not included in a group of 

similar items of property (as defined in 

§ 1.170A–13(c)(7)(iii)). For rules 

regarding the number of appraisals 

required if similar items of property are 

contributed, see § 1.170A–

13(c)(3)(iv)(A). 

(8) Prohibited appraisal fees. The fee 

for a qualified appraisal cannot be based 

to any extent on the appraised value of 

the property. For example, a fee for an 

appraisal will be treated as based on the 

appraised value of the property if any 

part of the fee depends on the amount 

of the appraised value that is allowed by 

the IRS after an examination. 

(9) Retention of qualified appraisal. 

The donor must retain the qualified 

appraisal for so long as it may be 

relevant in the administration of any 

internal revenue law. 

(10) Appraisal disregarded pursuant 

to 31 U.S.C. 330(c). If an appraisal is 

disregarded pursuant to 31 U.S.C. 

330(c), it has no probative effect as to 

the value of the appraised property and 

does not satisfy the appraisal 

requirements of paragraphs (d) and (e) 

of this section, unless the appraisal and 

Form 8283 include the appraiser 

signature, the date signed by the 

appraiser, and the appraiser declaration 

described in paragraphs (a)(3)(v) and 

(a)(3)(vi) of this section and §§ 1.170A–

16(d)(3)(iii) and (d)(4), and the donor 

had no knowledge that the signature, 

date, or declaration was false when the 

appraisal and Form 8283 were signed by 

the appraiser. 

(11) Partial interest. If the contributed 

property is a partial interest, the 

appraisal must be of the partial interest. 

(b) Qualified appraiser—(1) 

Definition. For purposes of section 

170(f)(11) and §§ 1.170A–16(d)(1)(ii) 

and 1.170A–16(e)(1)(ii), the term 

qualified appraiser means an individual 

with verifiable education and 

experience in valuing the relevant type 

of property for which the appraisal is 

performed (as described in paragraphs 

(b)(2) through (b)(4) of this section). 

(2) Education and experience in 

valuing relevant type of property. (i) In 

general. An individual is treated as 

having education and experience in 

valuing the relevant type of property 

within the meaning of paragraph (b)(1) 

of this section if, as of the date the 

individual signs the appraisal, the 

individual has—

(A) Successfully completed (for 

example, received a passing grade on a 

final examination) professional or 

college-level coursework (as described 

in paragraph (b)(2)(ii) of this section) in 

valuing the relevant type of property (as 

described in paragraph (b)(3) of this 

section), and has two or more years of 

experience in valuing the relevant type 

of property (as described in paragraph 

(b)(3) of this section); or 

(B) Earned a recognized appraisal 

designation (as described in paragraph 

(b)(2)(iii) of this section) for the relevant 

type of property (as described in 

paragraph (b)(3) of this section). 

(ii) Coursework must be obtained from 

professional or college-level educational 

institution, appraisal organization, or 

employer educational program. For 

purposes of paragraph (b)(2)(i)(A) of this 

section, the coursework must be 

obtained from—

(A) A professional or college-level 

educational organization described in 

section 170(b)(1)(A)(ii); 

(B) A generally recognized 

professional appraisal organization that 

regularly offers educational programs in 

the principles of valuation; or 

(C) An employer as part of an 

employee apprenticeship or educational 

program substantially similar to the 

educational programs described in 

paragraphs (b)(2)(ii)(A) and (B) of this 

section. 

(iii) Recognized appraisal designation 

defined. A recognized appraisal 

designation means a designation 

awarded by a recognized professional 

appraiser organization on the basis of 

demonstrated competency. For example, 

an appraiser who has earned a 

designation similar to the Member of the 

Appraisal Institute (MAI), Senior 

Residential Appraiser (SRA), Senior 

Real Estate Appraiser (SREA), or Senior 

Real Property Appraiser (SRPA) 

membership designation has earned a 

recognized appraisal designation. 

(3) Relevant type of property 

defined—(i) In general. The relevant 

type of property means the category of 

property customary in the appraisal 

field for an appraiser to value. 

(ii) Examples. The following 

examples illustrate the rule of paragraph 

(b)(3)(i) of this section: 

Example (1). Coursework in valuing 

relevant type of property. There are very few 

professional-level courses offered in widget 

appraising, and it is customary in the 

appraisal field for personal property 

appraisers to appraise widgets. Appraiser A 

has successfully completed professional-level 

coursework in valuing personal property 

generally but has completed no coursework 

in valuing widgets. The coursework 

completed by Appraiser A is for the relevant 

type of property under paragraphs (b)(2)(i) 

and (b)(3)(i) of this section. 

Example (2). Experience in valuing 

relevant type of property. It is customary for 

professional antique appraisers to appraise 

antique widgets. Appraiser A has 2 years of 

experience in valuing antiques generally and 

is asked to appraise an antique widget. 

Appraiser A has obtained experience in 

valuing the relevant type of property under 

paragraphs (b)(2)(i) and (b)(3)(i) of this 

section. 

Example (3). No experience in valuing 

relevant type of property. It is not customary 

for professional antique appraisers to 

appraise new widgets. Appraiser A has 

experience in appraising antiques generally 

but no experience in appraising new widgets. 

Appraiser A is asked to appraise a new 

widget. Appraiser A does not have 

experience in valuing the relevant type of 

property under paragraphs (b)(2)(i) and 

(b)(3)(i) of this section. 

(4) Verifiable. For purposes of 

paragraph (b)(1) of this section, 

education and experience in valuing the 

relevant type of property are verifiable 

if the appraiser specifies in the appraisal 

the appraiser’s education and 

experience in valuing the relevant type 

of property (as described in paragraphs 

(b)(2) and (b)(3) of this section), and the 

appraiser makes a declaration in the 

appraisal that, because of the appraiser’s 

education and experience described in 

this paragraph (b)(4), the appraiser is 

qualified to make appraisals of the 

relevant type of property being valued. 

(5) Individuals who are not qualified 

appraisers. The following individuals 

cannot be qualified appraisers for the 

appraised property: 

(i) An individual who receives a fee 

prohibited by paragraph (a)(8) of this 

section. 

(ii) The donor of the property. 

(iii) A party to the transaction in 

which the donor acquired the property 

(for example, the individual who sold, 

exchanged, or gave the property to the 

donor, or any individual who acted as 

an agent for the transferor or for the 

donor for the sale, exchange, or gift), 

unless the property is contributed 

within 2 months of the date of 

acquisition and its appraised value does 

not exceed its acquisition price. 


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Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Proposed Rules 45919 

(iv) The donee of the property. 

(v) Any individual who is either—

(A) Related (within the meaning of 

section 267(b)) to, or an employee of, 

any of the individuals described in 

paragraphs (b)(5)(ii), (b)(5)(iii), or 

(b)(5)(iv) of this section, or married to an 

individual who is in a relationship 

described in section 267(b) with any of 

the foregoing individuals; or 

(B) An independent contractor who is 

regularly used as an appraiser by any of 

the individuals described in paragraphs 

(b)(5)(ii), (b)(5)(iii), or (b)(5)(iv) of this 

section, and who does not perform a 

majority of his or her appraisals for 

others during the taxable year. 

(vi) An individual who is prohibited 

from practicing before the Internal 

Revenue Service by the Secretary under 

31 U.S.C. section 330(c) at any time 

during the 3-year period ending on the 

date the appraisal is signed by the 

individual. 

(c) Effective/applicability date. This 

section applies to contributions made 

after the date these regulations are 

published as final regulations in the 

Federal Register. 

Par. 7. Section 1.170A–18 is added to 

read as follows: § 1.170A–18 

Contributions of clothing and household 

items—(a) In general. Except as 

provided in paragraph (b) of this 

section, no deduction is allowed under 

section 170(a) for a contribution of 

clothing or a household item (as 

described in paragraph (c) of this 

section) unless—

(1) The item is in good used condition 

or better at the time of the contribution; 

and 

(2) The donor meets the 

substantiation requirements of 

§ 1.170A–16. 

(b) Certain contributions of clothing or 

household items with claimed value of 

more than $500. The rule described in 

paragraph (a)(1) of this section does not 

apply to a contribution of a single item 

of clothing or a household item for 

which a deduction of more than $500 is 

claimed, if the donor submits with the 

return on which the deduction is 

claimed a qualified appraisal (as defined 

in § 1.170A–17(a)(1)) of the property 

prepared by a qualified appraiser (as 

defined in § 1.170A–17(b)(1)) and a 

completed Form 8283 (Section B) (as 

described in § 1.170A–16(d)(3)). 

(c) Definition of household items. For 

purposes of section 170(f)(16) and this 

section, the term household items 

includes furniture, furnishings, 

electronics, appliances, linens, and 

other similar items. Food, paintings, 

antiques, and other objects of art, 

jewelry, gems, and collections are not 

household items. 

(d) Effective/applicability date. This 

section applies to contributions made 

after the date these regulations are 

published as final regulations in the 

Federal Register. 

Sherri L. Brown, 

Acting Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. E8–17953 Filed 8–6–08; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[Docket No. USCG–2008–0761] 

RIN 1625–AA08 

Special Local Regulations for Marine 

Events; St. Leonard Creek, Patuxent 

River, Calvert County, MD 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes to 

establish special local regulations 

during the ‘‘War of 1812 North 

American Grand Tactical’’, a marine 

event to be held September 21, 2008 on 

the waters of St. Leonard Creek and 

Patuxent River, Calvert County, MD. 

These special local regulations are 

necessary to provide for the safety of life 

on navigable waters during the event. 

This action is intended to temporarily 

restrict vessel traffic in a portion of St. 

Leonard Creek and the Patuxent River 

during the event. 

DATES: Comments and related material 

must reach the Coast Guard on or before 

September 8, 2008. 

ADDRESSES: You may submit comments 

identified by Coast Guard docket 

number USCG–2008–0761 to the Docket 

Management Facility at the U.S. 

Department of Transportation. To avoid 

duplication, please use only one of the 

following methods: 

(1) Online: http:// 

www.regulations.gov. 

(2) Mail: Docket Management Facility 

(M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590–

0001. 

(3) Hand delivery: Same as mail 

address above, between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. The telephone number 

is 202–366–9329. 

(4) Fax: 202–493–2251. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this proposed 

rule, call Dennis Sens, Project Manager, 

Fifth Coast Guard District, Inspections 

and Investigations Branch, at (757) 398–

6204. If you have questions on viewing 

or submitting material to the docket, call 

Renee V. Wright, Program Manager, 

Docket Operations, telephone 202–366–

9826. 

SUPPLEMENTARY INFORMATION: 

Public Participation and Request for 

Comments 

We encourage you to participate in 

this rulemaking by submitting 

comments and related materials. All 

comments received will be posted, 

without change, to http:// 

www.regulations.gov and will include 

any personal information you have 

provided. We have an agreement with 

the Department of Transportation to use 

the Docket Management Facility. 

Submitting Comments 

If you submit a comment, please 

include the docket number for this 

rulemaking (USCG–2008–0761), 

indicate the specific section of this 

document to which each comment 

applies, and give the reason for each 

comment. We recommend that you 

include your name and a mailing 

address, an e-mail address, or a phone 

number in the body of your document 

so that we can contact you if we have 

questions regarding your submission. 

You may submit your comments and 

material by electronic means, mail, fax, 

or delivery to the Docket Management 

Facility at the address under ADDRESSES; 

but please submit your comments and 

material by only one means. If you 

submit them by mail or delivery, submit 

them in an unbound format, no larger 

than 81⁄2 by 11 inches, suitable for 

copying and electronic filing. If you 

submit them by mail and would like to 

know that they reached the Facility, 

please enclose a stamped, self-addressed 

postcard or envelope. We will consider 

all comments and material received 

during the comment period. We may 

change this proposed rule in view of 

them. 

Viewing Comments and Documents 

To view comments, as well as 

documents mentioned in this preamble 

as being available in the docket, go to 

http://www.regulations.gov at any time. 

Enter the docket number for this 

rulemaking (USCG–2008–0761) in the 

Search box, and click ‘‘Go >>.’’ You may 

also visit either the Docket Management 

Facility in Room W12–140 on the 

ground floor of the Department of 

Transportation West Building, 1200 

New Jersey Avenue, SE., Washington, 

DC 20590, between 9 a.m. and 5 p.m., 


rmajette on PRODPC74 with PROPOSALS