My understanding is you only have to file Form 8283 if the amount of each noncash contribution is more than $500 (or a group of similar items totaling over $500). But if I enter a couple donations on the ProConnect Noncash Contributions screen that are under $500, but total over $500, it creates this EF Critical Diagnostic:
Form 8283 is required for noncash contributions over $500. Please verify that Form 8283 is generating and is properly completed.
It seems wrong that it's creating a Critical Diagnostic for situations like this where the 8283 likely may not actually be required (if anything, it should just be a Suggestion rather than a Critical Diagnostic). I assume I can just ignore the diagnostic in this case?
Your understanding is incorrect.
If the total of all noncash contributions is more than $500 then the 8283 is needed.
According to the form 8283 instructions:
"You must file one or more Forms 8283 if the amount of your deduction for each noncash contribution is more than $500. You must also file Form 8283 if you have a group of similar items for which a total deduction of over $500 is claimed."
I'm open to the possibility that my understanding of it is incorrect, but it sounds to me like it's not required if you don't have any one group of similar items that is over $500, even if the total is over $500.
I haven't looked at those instructions in a while.
I, and my software, always use the "rule" I stated above.
People generally donate used clothes, book, and assorted household crap which loosely defined could be considered related.
Anyway, I don't think you'll get the return to efile if you don't fill out the 8283.
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