(Rev. December 2025)

Publication 561

(Rev. December 2025)

Determining

the Value of

Donated

Property

Future Developments

For the latest information about developments

related to Pub. 561, such as legislation enacted

after it was published, go to IRS.gov/Pub561.

Reminders

Disallowance of deduction for certain conservation contributions by partnerships

and S corporations. If you are an ultimate

member of a partnership or an S corporation

and the amount of the partnership’s or S corporation’s qualified conservation contribution exceeds 2.5 times the sum of each ultimate member’s relevant basis, then the contribution is not

treated as a qualified conservation contribution.

Unless the conservation contribution meets an

exception, it will be disallowed. See Disallowance of deductions for certain conservation

contributions by partnerships or S corporations,

later.

Introduction

This publication is designed to help donors and

appraisers determine the value of property

(other than cash) that is given to qualified organizations. It sets forth general valuation principles applicable to the income, gift, and estate

taxes with a focus in some areas on the valuation of noncash property contributed after January 1, 2019, to a charity that qualifies under

section 170(c) for an income tax charitable contribution deduction. It also explains, in general,

what kind of information you must have to support the income tax charitable contribution deduction you claim on your return.

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

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

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Useful Items

You may want to see:

Publication

526 Charitable Contributions

526

Forms (and Instructions)

8282 Donee Information Return

8282

8283 Noncash Charitable Contributions

8283

8283-V Payment Voucher for Filing Fee

Under Section 170(f)(13)

8283-V

See How To Get Tax Help near the end of this

publication for information about getting these

publications and forms.

What Is Fair Market

Value (FMV)?

To figure how much you may deduct for property that you contribute, you must first determine its FMV on the date of the contribution.

FMV. FMV is the price that property would sell

for on the open market. It is the price that would

be agreed on between a willing buyer and a willing seller, with neither being required to act, and

both having reasonable knowledge of the relevant facts. In addition to this general rule, there

are special rules used to value certain types of

property such as remainder interests, annuities,

interests for life or for a term of years, and reversions, discussed below.

Example 1. If you give an item of used

clothing that is in good used condition or better

to the Salvation Army, the FMV would be the

price that typical buyers actually pay for clothing

of this age, condition, style, and use. Usually,

such items are worth far less than what you paid

for them.

Example 2. If you donate jewelry to a charity, the FMV of the jewelry is not the value an

appraiser determined in an appraisal you obtained so that your insurance company would

reimburse you for the insured value of the jewelry in case the jewelry is stolen or destroyed.

This insured value does not reflect what a willing buyer and willing seller would pay for the

jewelry on the date of the contribution to charity.

It reflects only the replacement cost of the jewelry when you obtained the appraisal. See Replacement Cost, later.

Factors. In making and supporting the valuation of property, all factors affecting value are

relevant and must be considered. These include, but are not limited to:

• The cost or selling price of the item,

• Sales of comparable properties,

2

• Replacement cost, and

• Opinions of professional appraisers.

These factors are discussed later. Also, see

Table 1 for a summary of questions to ask as

you consider each factor.

Date of contribution. Ordinarily, the date of a

contribution is the date on which the property is

delivered to the charity or the title transfer date,

provided you do not retain any right to or interest in the property that would limit the charity’s

use of the property.

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

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

date of delivery. If the certificate is mailed and

received through the regular mail, it is the date

of mailing. If you deliver the certificate to a bank

or broker acting as your agent or to the issuing

corporation or its agent, for transfer into the

name of the organization, the date of the contribution is the date the stock is transferred on the

books of the corporation.

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

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

the contribution is the FMV of the property on

the date the option is exercised minus the exercise price.

Example. You grant an option to a local

university, which is a qualified organization, to

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

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

$50,000.

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

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

Therefore, you have made a charitable contribution of $15,000 ($55,000, the FMV, minus

$40,000, the exercise price) in the tax year the

option is exercised.

Determining FMV

Determining the value of donated property depends upon many factors. You should consider

all the facts and circumstances connected with

the property, including any recent transactions,

in determining value. Value may also be based

on desirability, use, condition, scarcity, and market demand for that property. Depending on the

type of property, there may be other characteristics that are relevant in determining its value.

Cost or Selling Price of the

Donated Property

The cost of the property to you or the actual

selling price received by the qualified organization may be the best indication of its FMV. However, because conditions in the market change,

the cost or selling price of property may have

less weight if the property was not bought or

sold at a time that is reasonably close to the

date of contribution.

The cost or selling price is a good indication

of the property’s value if:

• The purchase or sale took place close to

the valuation date in an open market,

• The purchase or sale was at “arm’s-length,”

• The buyer and seller knew all relevant

facts,

• The buyer and seller did not have to act,

and

• The economic conditions in the open market did not change between the date of

purchase or sale and the valuation date.

Example. Bailey Morgan, who is not a

dealer in gems, bought an assortment of gems

for $5,000 from a promoter. The promoter

claimed that the price was “wholesale” even

though this dealer and other dealers made similar sales at similar prices to other persons who

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

gave them to charity, Bailey could claim a charitable contribution deduction of $15,000, which,

according to the promoter, would be the value

of the gems at the time of contribution. Bailey

gave the gems to a qualified charity 13 months

after buying them.

The selling price for these gems had not

changed from the date of purchase to the date

Bailey donated them to charity. The best evidence of FMV depends on actual transactions

and not on some artificial estimate. The $5,000

paid by Bailey and others is, therefore, the best

evidence of the maximum FMV of the gems.

Terms of the purchase or sale. The terms of

the purchase or sale should be considered in

determining FMV if they influenced the price.

These terms include any restrictions, understandings, or covenants limiting the use or disposition of the property.

Rate of increase or decrease in value. Unless you can show that there were unusual circumstances, it is assumed that the increase or

decrease in the value of your donated property

from your cost has been at a reasonable rate.

For time adjustments, an appraiser may consider published price indexes for information on

general price trends, building costs, commodity

costs, securities, and works of art sold at auction in arm’s-length sales.

Example. Corey Brown bought a painting

for $10,000. Thirteen months later, Corey gave

it to an art museum, claiming a charitable contribution deduction of $15,000 on their tax return.

The appraisal of the painting should include information showing that there were unusual circumstances that justify a 50% increase in value

for the 13 months Corey held the property.

Arm’s-length offer. An arm’s-length offer to

buy the property close to the valuation date may

help to prove its value if the person making the

offer was willing and able to complete the transaction. To rely on an offer, you should be able to

show proof of the offer and the specific amount

to be paid. Offers to buy property other than the

donated item will help to determine value if the

other property is reasonably similar to the donated property.

Publication 561 (12-2025)

Table 1. Factors That Affect FMV

IF the factor you are

considering is...

cost or selling price

Opinions of Professional

Appraisers

THEN you should ask these questions...

Was the purchase or sale of the property reasonably close to the date of contribution?

Was any increase or decrease in value, as compared to your cost, at a reasonable

rate?

Do the terms of purchase or sale limit what can be done with the property?

Was there an arm’s-length offer to buy the property close to the valuation date?

sales of comparable

properties

How similar is the property sold to the property donated?

replacement cost

What would it cost to replace the donated property?

How close is the date of sale to the valuation date?

Was the sale at arm’s-length?

What was the condition of the market at the time of sale?

Is there a reasonable relationship between replacement cost and FMV?

Is the supply of the donated property more or less than the demand for it?

opinions of professional

appraisers

Is the professional appraiser knowledgeable and competent?

Is the opinion thorough and supported by facts and experience?

Sales of Comparable Properties

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

sale depends on the following.

• The degree of similarity between the property sold and the donated property.

• The time of the sale—whether it was close

to the valuation date.

• The circumstances of the sale—whether it

was at arm’s-length with a knowledgeable

buyer and seller, with neither having to act.

• Whether the comparable sale is from the

same market area as the donated property.

• The conditions of the market in which the

sale was made—whether unusually inflated or deflated.

The comparable sales method of valuing real

estate is explained later under Valuation of Various Kinds of Property.

Example 1. Martha Black, who is not a

book dealer, paid a promoter $10,000 for 500

copies of a single edition of a modern translation of a religious book. The promoter had

claimed that the price was considerably less

than the “retail” price and gave Martha a statement that the books had a total retail value of

$30,000. The promoter advised that if Martha

kept the books for more than 1 year and then

gave them to a qualified organization, Martha

could claim a charitable contribution deduction

for the “retail” price of $30,000. Thirteen months

later, all the books were given to a house of worship from a list provided by the promoter. At the

time of the donation, wholesale dealers were

selling similar quantities of books to the general

public for $10,000.

Because Martha was not a dealer, she could

not sell the books for their retail value. The FMV

of the books is $10,000, the price at which similar quantities of books were being sold to the

general public by wholesale dealers at the time

of the contribution.

Example 2. The facts are the same as in

Example 1, except that the promoter gave Martha Black a second option. The promoter said

that if Martha wanted a charitable contribution

Publication 561 (12-2025)

deduction within 1 year of the purchase, Martha

could buy the 500 books at the “retail” price of

$30,000, paying only $10,000 in cash and giving a promissory note for the remaining

$20,000. The principal and interest on the note

would not be due for 12 years. According to the

promoter, Martha could then, within 1 year of

the purchase, give the books to a qualified organization and claim the full $30,000 retail price

as a charitable contribution. Martha purchased

the books under the second option and, 3

months later, gave them to a house of worship,

which will use the books for religious purposes.

At the time of the gift, the promoter was selling similar lots of books for either $10,000 or

$30,000. The difference between the two prices

was solely at the discretion of the buyer. The

promoter was a willing seller for $10,000.

Therefore, the value of Martha’s contribution of

the books is $10,000, the amount at which similar lots of books could be purchased from the

promoter by members of the general public.

Replacement Cost

The cost of buying, building, or manufacturing

property similar to the donated item may be

considered in determining FMV. However, there

must be a reasonable relationship between the

replacement cost and the FMV.

The replacement cost is the amount it would

cost to replace the donated item on the valuation date. In most cases, there is no relationship

between the replacement cost and the FMV. If

the supply of the donated property is more or

less than the demand for it, the replacement

cost becomes less important.

To determine the replacement cost of the

donated property, find the “estimated replacement cost new.” Then subtract from this figure

an amount for depreciation due to the physical

condition and obsolescence of the donated

property. You should be able to show the relationship between the depreciated replacement

cost and the FMV, as well as how you arrived at

the “estimated replacement cost new.”

Generally, the weight given to a professional appraiser’s opinion on matters such as the authenticity of a coin or a work of art, or the most profitable and best use of a piece of real estate,

depends on the knowledge and competence of

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

must support the opinion. For additional information, see Appraisal, later.

Problems in Determining

FMV

There are a number of problems in determining

the FMV of donated property.

Unusual Market Conditions

The sale price of the property itself in an

arm’s-length transaction in an open market is

often the best evidence of its value. When you

rely on sales of comparable property, the sales

must have been made in an open market. If

those sales were made in a market that was artificially supported or stimulated so as not to be

truly representative, the prices at which the

sales were made will not indicate the FMV.

For example, liquidation sale prices usually

do not indicate the FMV. Also, sales of stock under unusual circumstances, such as sales of

small lots, forced sales, and sales in a restricted

market, may not represent the FMV.

Selection of Comparable Sales

Using sales of comparable property is an important method for determining the FMV of donated property. However, the amount of weight

given to a sale depends on the degree of similarity between the comparable and the donated

properties. The degree of similarity must be

close enough so that this selling price would

have been given consideration by reasonably

well-informed buyers or sellers of the property.

Example. You give a rare, old book to your

former college. The book is a third edition and is

in poor condition because of a missing back

cover. You discover that there was a sale for

$300, near the valuation date, of a first edition of

the book that was in good condition. Although

the contents are the same, the books are not at

all similar because of the different editions and

their physical condition. Little consideration

would be given to the selling price of the $300

property by knowledgeable buyers or sellers.

Future Events

You may not consider unexpected events happening after your donation of property in making

the valuation. You may consider only the facts

known at the time of the gift and those that

could reasonably be expected at the time of the

gift.

3

Example. You give a remainder interest in

a farm to a qualified charity. The transfer provides that your mother will have the right to all

income and full use of the farm for her life. Even

though your mother dies 1 week after the transfer, the value of the property on the date it is

given is its present value, subject to the life interest as estimated from actuarial tables. You

may not take a higher deduction because the

charity received full use and possession of the

land only 1 week after the transfer.

Using Past Events To Predict the

Future

A common error is to rely too much on past

events that do not fairly reflect the probable future earnings and FMV.

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

were three stages in the patent’s history of earnings. First, there was rapid growth in earnings

when the invention was introduced. Then, there

was a period of high earnings when the invention was being exploited. Finally, there was a

decline in earnings when competing inventions

were introduced. The entire history of earnings

may be relevant in estimating the future earnings. However, the appraiser must not rely too

much on the stage of rapid growth in earnings

or of high earnings. The market conditions at

those times do not represent the condition of

the market at the valuation date. What is most

significant is the trend of decline in earnings up

to the valuation date. For more information

about donations of patents, see Patents, later.

Valuation of Various

Kinds of Property

This section contains information on determining the FMV of ordinary kinds of donated property. For information on appraisals, see Appraisal, later.

Household Items

The FMV of used household items is usually

much lower than the price paid when new.

Household items include furniture, furnishings,

electronics, appliances, linens, and similar

items. Household items do not include paintings, antiques, objects of art, jewelry, gems, and

collections like stamp and coin collections.

Such used property may have little or no market

value because it may be out of style.

You cannot take an income tax charitable

contribution deduction for household items unless they are in good used condition or better.

The one exception to this is a household item

that is not in good used condition or better for

which you claim an income tax charitable contribution deduction of more than $500. In this

case, you must obtain a qualified appraisal valuing the item and complete a Form 8283. See

Deduction over $500 for certain clothing or

household items, later.

If the property is valuable because it is old or

unique, see Art and Collectibles, later.

4

Used Clothing

Used clothing and other personal items are usually worth far less than the price you paid for

them. Valuation of items of clothing does not

lend itself to fixed formulas or methods.

The price that buyers of used items actually

pay in used clothing stores, such as consignment or thrift shops, is an indication of the

value.

You cannot take an income tax charitable

contribution deduction for an item of clothing

unless it is in good used condition or better. An

item of clothing that is not in good used condition or better for which you claim an income tax

charitable contribution deduction of more than

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

certain clothing or household items, later.

Art and Collectibles

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

deduction of more than $5,000 must be supported by a qualified appraisal and a Form 8283.

See Qualified Appraisal, later.

Art valued at $20,000 or more. If you claim a

deduction of $20,000 or more for an income tax

charitable contribution donation of art, you must

attach the qualified appraisal for the art to the

Form 8283. A photograph of a size and of sufficient quality fully showing the object, preferably

a high-resolution digital image, must be provided if requested.

Art valued at $50,000 or more. If you donate

an item of art that has been appraised at

$50,000 or more, you can request a Statement

of Value for that item from the IRS. You must request the statement before filing the tax return

that reports the donation. Your request must include the following.

• A copy of a qualified appraisal of the item.

See Qualified Appraisal, later.

• A user fee of $8,400 for one to three items

and $800 for each additional item paid

through Pay.gov. A payment confirmation

will be provided to you through the Pay.gov

portal and you should submit the payment

confirmation with your Statement of Value

request.

• A completed Form 8283, Section B.

• The location of the IRS territory that has

examination responsibility for your return.

If your request lacks essential information, you

will be notified and given 30 days to provide the

missing information.

Send your request to:

Internal Revenue Service/Appeals

Attn: Art Appraisal Services

Request for Statement of Value

1111 Constitution Ave. NW, Room 3615

Washington, DC 20224-0002

Refunds. You can withdraw your request

for a Statement of Value at any time before it is

issued. However, the IRS will not refund the

user fee if you do.

If the IRS declines to issue a Statement of

Value in the interest of efficient tax administration, the IRS will refund the user fee.

Art. Because many kinds of art may be the

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

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

antiques, decorative arts, textiles, carpets, silver, rare manuscripts, and historical memorabilia. If you own both the art and the copyright to

the art, in some cases your charitable contribution deduction may be denied unless you donate both the art and its copyright.

Authenticity. The professional appraiser

should use reasonable due diligence to determine or confirm the authenticity of a donated

artwork. This due diligence may include verifying whether the artwork is included in the relevant catalogue raisonné (a scholarly listing of all

known works by a specific artist), has an assigned foundation number when relevant, is included in a comprehensive online archive, or

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

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

in determining the valuation of art and antiques.

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

less than a similar piece in excellent condition.

Collectibles. Because many kinds of collectibles may be the subject of a charitable donation, it is not possible to discuss all of the possible types in this publication. Most common are

rare books, autographs, sports memorabilia,

dolls, manuscripts, stamps, coins, guns, gems,

jewelry, music and entertainment memorabilia,

comics, toys, and natural history items.

Reference material. Publications available to help you determine the value of many

kinds of collections include catalogs, dealers’

price lists, and specialized hobby periodicals.

When using one of these price guides, you

must use the current edition at the date of contribution.

Caution: These sources are not always reliable indicators of FMV and should be supported by other evidence.

For example, a dealer may sell an item for

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

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

The appraiser must analyze the reference material and recognize and make adjustments for

misleading entries. If you are claiming an income tax charitable contribution deduction for

the donation of a collection valued at more than

$5,000, you must obtain a qualified appraisal

and complete a Form 8283.

Gems and jewelry. Gems and jewelry are

of such a specialized nature that it is almost always necessary to get an appraisal by a specialized jewelry appraiser. The appraisal should

describe, among other things, the style of the

Publication 561 (12-2025)

jewelry, the cut and setting of the gem, and

whether it is now in fashion. The stone’s coloring, weight, cut, brilliance, and flaws should be

reported and analyzed. Sentimental personal

value has no effect on FMV. But if the jewelry

was owned by a famous person, its value might

increase. If you had the jewelry made, the labor

costs you incurred in having it made may have

little or no effect on its FMV. GIA certificates and

color photos should be included in jewelry appraisals.

Stamp collections. Most libraries have

catalogs or other books that report the publisher’s estimate of values. Generally, two price levels are shown for each stamp: the price postmarked and the price not postmarked. Contact

an appraiser for assistance with properly valuing stamp collections.

Coin collections. Many catalogs and other

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

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

demand for it, its age, and its rarity. Another important factor is the coin’s condition. For example, there is a great difference in the value of a

coin that is in mint condition and a similar coin

that is only in good condition.

Use caution when consulting price guides

for coins as only a trained grader can distinguish the difference between various Mint State

grades and circulated grades including extremely fine, very fine, fine, very good, good,

fair, or poor. The difference in value between

one grade and another could be vast.

Books. The value of books is usually determined by selecting comparable sales and adjusting the prices according to the differences

between the comparable sales and the item being evaluated. This can be difficult to do and,

except for a collection of little value, should be

done by a specialized appraiser.

Modest value of collection. If the collection you are donating is of modest value, not requiring a written appraisal, the following information may help you in determining the FMV.

A book that is very old or very rare is not

necessarily valuable. There are many books

that are very old or rare but that have little or no

market value.

Condition of book. The condition of a

book may have a great influence on its value.

Collectors are interested in items that are in

fine, or at least good, condition. When a book

has a missing page, a loose binding, tears, or

stains, or is otherwise in poor condition, its

value is greatly lowered.

Other factors. Some other factors in the

valuation of a book are the kind of binding

(leather, cloth, paper), page edges, and illustrations (drawings and photographs). Collectors

usually want first editions of books. However,

because of changes or additions, other editions

are sometimes worth as much as or more than

the first edition.

Manuscripts, autographs, diaries, and

similar items. When these items are handwritten, or at least signed by famous people,

they are often in demand and are valuable.

However, the noteworthiness of an author is not

Publication 561 (12-2025)

the only determining factor; the writings of unknown or obscure authors may also be of value

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

difficult. For example, there may be a great difference in value between two diaries that were

kept by a famous person—one kept during

childhood and the other during a later period in

their life. The appraiser determines a value in

these cases by applying knowledge and judgment to such factors as comparable sales and

market conditions.

Cars, Boats, and Aircraft

You can only receive a deduction for the contribution of certain cars, boats, and aircraft known

as “qualified vehicles” to a qualified organization. Also, there are many rules you need to

comply with to obtain this deduction. See Pub.

526 for more details. In general, a qualified vehicle is a car or any motor vehicle manufactured

mainly for use on public streets, roads, and

highways; a boat; or an airplane.

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

different regions of the country, containing complete dealer sale prices or dealer average prices for recent model years. Prices are reported

for each make, model, and year. These guides

also provide estimates for adjusting for unusual

equipment, unusual mileage, and physical condition. The prices are not “official,” and these

publications are not considered an appraisal of

any specific donated property. But they do provide clues for making an appraisal and suggest

relative prices for comparison with current sales

and offerings in your area.

These publications are sometimes available

from public libraries or at a bank, credit union,

or finance company. You can also find pricing

information about used cars on the Internet.

An acceptable measure of the FMV of a donated car, boat, or airplane is an amount not in

excess of the price listed in a used vehicle pricing guide for a private party sale, not the dealer

retail value, of a similar vehicle. However, the

FMV may be less than that amount if the vehicle

has engine trouble, body damage, high mileage, or any type of excessive wear. The FMV of

a donated vehicle is the same as the price listed

in a used vehicle pricing guide for a private

party sale only if the guide lists a sales price for

a vehicle that is the same make, model, and

year, sold in the same area, in the same condition, with the same or similar options or accessories, and with the same or similar warranties

as the donated vehicle.

Example. You donate a used car in poor

condition to a local high school for use by students studying car repair. A used car guide

shows the dealer retail value for this type of car

in poor condition is $1,600. However, the guide

shows the price for a private party sale of the

car is only $750. The FMV of the car is considered to be no more than $750.

Boats. Except for inexpensive small boats, the

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

More information. Your deduction for a donated car, boat, or airplane is generally limited to

the gross proceeds from its sale by the qualified

organization. This rule applies if the claimed

value of the donated vehicle is more than $500.

In certain cases, you may be able to deduct the

vehicle’s FMV. For details and filing requirements, see Pub. 526.

Inventory

If you donate any inventory item to a charitable

organization, the amount of your deductible

contribution is generally the FMV of the item,

minus any gain you would have realized if you

had sold the item at its FMV on the date of the

gift. For more information, see Pub. 526.

Patents

To determine the FMV of a patent, you must

take into account, among other factors:

• Whether the patented technology has

been made obsolete by other technology;

• Any restrictions on the donee’s use of or

ability to transfer the patented technology;

and

• The length of time remaining before the

patent expires.

See Pub. 526 for a discussion of the available charitable contribution deduction for the

contribution of a patent and other intellectual

property like copyrights.

Stocks and Bonds

The value of stocks and bonds is the FMV of a

share or bond on the valuation date. See Date

of contribution, earlier, under What Is Fair Market Value (FMV)?

Selling prices on valuation date. If there is

an active public market for the contributed

stocks or bonds on a stock exchange, in an

over-the-counter market, or elsewhere, the FMV

of each share or bond is the average price between the highest and lowest quoted selling prices on the valuation date. For example, if the

highest selling price for a share was $11 and

the lowest $9, the average price is $10. You get

the average price by adding $11 and $9 and dividing the sum by 2.

No sales on valuation date. If there were

no sales on the valuation date but there were

sales within a reasonable period before and after the valuation date, you determine FMV by

taking the average price between the highest

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

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

days between the selling dates and the valuation date.

Example. On the day you gave stock to a

qualified organization, there were no sales of

the stock. Sales of the stock nearest the valuation date took place 2 trading days before the

valuation date at an average selling price of $10

and 3 trading days after the valuation date at an

average selling price of $15. The FMV on the

valuation date was $12, figured as follows.

5

[(3 x $10)

+

(2 x $15)]

÷

5

=

$12

Listings on more than one stock ex­

change. Stocks or bonds listed on more than

one stock exchange are valued based on the

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

applicable and the stocks or bonds are reported

on a composite listing of combined exchanges

in a publication of general circulation, use the

composite list. See also Unavailable prices,

later.

Bid and asked prices on valuation date. If

there were no sales within a reasonable period

before and after the valuation date, the FMV is

the average price between the bona fide bid

and asked prices on the valuation date.

Example. Although there were no sales of

Blue Corporation stock on the valuation date,

bona fide bid and asked prices were available

on that date of $14 and $16, respectively. The

FMV is $15, the average price between the bid

and asked prices.

No prices on valuation date. If there

were no prices available on the valuation date,

you determine FMV by taking the average prices between the bona fide bid and asked prices

on the closest trading date before and after the

valuation date. Both dates must be within a reasonable period. Then you weight these averages in inverse order by the respective number

of trading days between the bid and asked

dates and the valuation date.

Example. On the day you gave stock to a

qualified organization, no prices were available.

Bona fide bid and asked prices 3 days before

the valuation date were $10 and 2 days after the

valuation date were $15. The FMV on the valuation date is $13, figured as follows.

[(2 x $10)

+

(3 x $15)]

÷

5

=

$13

Prices only before or after valuation date,

but not both. If no selling prices or bona fide

bid and asked prices are available on a date

within a reasonable period before the valuation

date, but are available on a date within a reasonable period after the valuation date, or vice

versa, then the average price between the highest and lowest of such available prices may be

treated as the value.

Large blocks of stock. When a large block of

stock is put on the market, it may lower the selling price of the stock if the supply is greater

than the demand. On the other hand, market

forces may exist that will afford higher prices for

large blocks of stock. Because of the many factors to be considered, determining the value of

large blocks of stock usually requires the help of

experts specializing in underwriting large quantities of securities or in trading in the securities

of the industry of which the particular company

is a part.

Unavailable prices. If selling prices (or bid

and asked prices) are not available, you should

work with a professional appraiser to determine

6

the FMV of the bond or stock on the valuation

date because the analysis requires consideration of factors similar to those used to value an

Interest in a Business below.

sale and selling price, a property description,

the amount and terms of mortgages, property

surveys, the assessed value, the tax rate, and

the assessor’s appraised FMV.

Restricted securities. Some classes of stock

cannot be traded publicly because of restrictions imposed by the Securities and Exchange

Commission, or by the corporate charter or a

trust agreement. These restricted securities

usually trade at a discount in relation to freely

traded securities.

You should work with a professional because the analysis requires consideration of

factors similar to those used to value an interest

in a business. See Interest in a Business below.

The comparable selling prices must be adjusted to account for differences between the

sale property and the donated property. Because differences of opinion may arise between

appraisers as to the degree of comparability

and the amount of the adjustment considered

necessary for comparison purposes, an appraiser should document each item of adjustment.

Real Estate

Because each piece of real estate is unique and

its valuation is complicated, a detailed appraisal

by a professional appraiser is necessary.

The appraiser must be thoroughly trained in

the application of appraisal principles and

theory. In some instances, the opinions of

equally qualified appraisers may carry unequal

weight, such as when one appraiser has a better knowledge of local conditions.

The appraisal report must contain a complete description of the property, such as street

address, legal description, and lot and block

number, as well as physical features, condition,

and dimensions. The use to which the property

is put, zoning and permitted uses, and its potential use for other higher and better uses are also

relevant.

In general, there are three main approaches

to the valuation of real estate. An appraisal may

require the combined use of two or three methods rather than one method only.

1. Comparable Sales

The comparable sales method compares the

donated property with several similar properties

that have been sold. The selling prices, after adjustments for differences in date of sale, size,

condition, and location, would then indicate the

estimated FMV of the donated property.

If the comparable sales method is used to

determine the value of unimproved real property

(land without significant buildings, structures, or

any other improvements that add to its value),

the appraiser should consider the following factors when comparing the potential comparable

property and the donated property.

• Location, size, and zoning or use restrictions.

• Accessibility and road frontage, and available utilities and water rights.

• Riparian rights (right of access to and use

of the water by owners of land on the bank

of a river) and existing easements,

rights-of-way, leases, etc.

• Soil characteristics, vegetative cover, and

status of mineral rights.

• Other factors affecting value.

For each comparable sale, the appraisal

must include the names of the buyer and seller,

the deed book and page number, the date of

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

adjustments should be considered as comparable to the donated property.

2. Capitalization of Income

This method capitalizes the net income from the

property at a rate that represents a fair return on

the particular investment at the particular time,

considering the risks involved. The key elements are the determination of the income to be

capitalized and the rate of capitalization.

3. Replacement Cost New or

Reproduction Cost Minus

Observed Depreciation

This method, used alone, usually does not result in a determination of FMV. Instead, it generally tends to set the upper limit of value, particularly in periods of rising costs, because it is

reasonable to assume that an informed buyer

will not pay more for the property than it would

cost to reproduce a similar property. Of course,

this reasoning does not apply if a similar property cannot be created because of location, unusual construction, or some other reason. Generally, this method serves to support the value

determined from other methods. When the replacement cost method is applied to improved

realty, the land and improvements are valued

separately.

The replacement cost of a building is figured

by considering the materials, the quality of

workmanship, and the number of square feet or

cubic feet in the building. This cost represents

the total cost of labor and material, overhead,

and profit. After the replacement cost has been

figured, consideration must be given to the following factors.

• Physical deterioration—the wear and tear

on the building itself.

• Functional obsolescence—usually in older

buildings with, for example, inadequate

lighting, plumbing, or heating; small rooms;

or a poor floor plan.

• Economic obsolescence—outside forces

causing the whole area to become less desirable.

Interest in a Business

The FMV of any interest in a closely held business (whether a sole proprietorship or a business taxed as a corporation or partnership) is

the amount that a willing buyer would pay for the

Publication 561 (12-2025)

interest to a willing seller after consideration of

all relevant factors. Because of the many factors

to be considered in determining the FMV of an

interest in a closely held business, the help of

experts is usually required. Such a determination requires the consideration of all available financial data, as well as all relevant factors affecting FMV. The following factors, although not

all-inclusive, may be helpful.

• The business’s net worth and prospective

earning power.

• The nature and history of the business.

• The economic outlook of the industry in

which the business operates.

• The business’s position in the industry, its

competitors, and its management.

• The FMV of assets of the business including goodwill, if applicable.

• The value of interests in businesses engaged in the same or similar industries.

You should keep complete financial and

other information on which the valuation is

based. This includes copies of reports of examinations of the business made by accountants,

engineers, or any technical experts on or close

to the valuation date.

Annuities, Interests for Life

or Terms of Years,

Remainders, and Reversions

The FMV of these kinds of property is their

present value, except in the case of annuities

under contracts issued by companies regularly

engaged in their sale. The valuation of these

commercial annuity contracts and of insurance

policies is discussed later under Certain Life Insurance and Annuity Contracts.

To determine present value, you must know

the applicable interest rate and use actuarial tables.

Interest rate. The applicable interest rate varies. It is announced monthly in a news release

and published in the Internal Revenue Bulletin

as a Revenue Ruling. The interest rate to use is

under the heading “Rate Under Section 7520”

for a given month and year. For a transfer involving a charitable interest, you may elect to use

the interest rate for the month of the donation or

the interest rate for either of the 2 preceding

months. You must use the same interest rate to

determine the present value of all interests in

that property. You must attach a statement to

the return to take the election. You can call the

IRS office at 800-829-1040 to obtain this rate.

Actuarial tables. You need to refer to actuarial tables to determine the present value of a

charitable interest in the form of an annuity, any

interest for life or a term of years, or remainder

interest donated to a charitable organization.

Use the actuarial tables set forth by regulation for these types of interests. These tables

are referenced by and explained in IRS Pub.

1457, Actuarial Valuations, Version 4A; Pub.

1458, Actuarial Valuations, Version 4B; and

Pub. 1459, Actuarial Valuations, Version 4C.

These publications provide examples showing

the use of actuarial factors and contain links to

the tables of factors to be used in determining

the present value of an annuity, an interest for

Publication 561 (12-2025)

life or a term of years, or a remainder or reversionary interest. For qualified charitable transfers, you can use the factor for the month in

which you made the contribution or for either of

the 2 months preceding that month.

Pub. 1457 explains the use of actuarial factors for computing the present value of a remainder interest in a charitable remainder annuity trust and a pooled income fund, as well as

factors for annuities, life estates, term certain

estates, and other remainder interests. Pub.

1458 explains the use of the factors for valuing

the remainder interest in a charitable remainder

unitrust. Pub. 1459 explains the use of factors to

determine the present value of a remainder interest in depreciable property. You can download Pubs. 1457, 1458, and 1459 from https://

www.irs.gov/retirement-plans/actuarial-tables.

Formulas for actuarial factors for transfers to

pooled income funds may also be found in Regulations section 1.642(c)-6(e)(6), factors for

transfers to charitable remainder unitrusts in

Regulations section 1.664-4(e), and factors for

other transfers in Regulations section

20.2031-7(d)(6).

Note: The tables referenced by Versions

4A, 4B, and 4C of the publications are effective

for transfers on or after June 1, 2023. These tables use a more recent mortality basis than earlier tables. The earlier versions of the publications, Versions 3A, 3B, and 3C, are also

available: these versions—and the actuarial tables they reference—are applicable for transfers

after April 30, 2009, and before June 1, 2023.

However, there is a transition rule under which

you may elect to use the later tables (those referenced in Versions 4A, 4B, and 4C) for valuing

interests transferred from May 1, 2019, through

June 1, 2023. However, you must be consistent

in using factors derived under the same mortality basis with respect to each interest (income,

remainder, annuity, etc.) in the same property,

and with respect to all transfers occurring on

that valuation date. All of these publications and

tables can be accessed from https://

www.irs.gov/retirement-plans/actuarial-tables.

Special factors. If you need a special factor

for an actual transaction, you can request a letter ruling. Be sure to include the date of birth of

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

a user fee for providing special factors.

For more information about requesting a ruling, see Revenue Procedure 2026-1 (or annual

update).

For information on the circumstances under

which a charitable contribution deduction may

be allowed for the donation of a partial interest

in property not in trust, see Partial Interest in

Property Not in Trust, later.

Certain Life Insurance and

Annuity Contracts

The value of an annuity contract or a life insurance policy issued by a company regularly engaged in the sale of such contracts or policies is

the amount that company would charge for a

comparable contract.

But if the donee of a life insurance policy

may reasonably be expected to cash the policy

rather than hold it as an investment, then the

FMV is the cash surrender value rather than the

replacement cost.

If an annuity is payable under a combination

annuity contract and life insurance policy (for

example, a retirement income policy with a

death benefit) and there was no insurance element when it was transferred to the charity, the

policy is treated as an annuity contract.

Partial Interest in Property

Not in Trust

Generally, no deduction is allowed for a charitable contribution, not made in trust, of less than

your entire interest in property. However, this

does not apply to a transfer of less than your

entire interest if it is a transfer of:

• A remainder interest in your personal residence or farm,

• An undivided part of your entire interest in

property, or

• A qualified conservation contribution.

Undivided Part of Your Entire

Interest

A contribution of an undivided part of your entire

interest in property must consist of a part of

each and every substantial interest or right you

own in the property. It must extend over the entire term of your interest in the property. For example, you are entitled to the income from certain property for your life (life estate) and you

contribute 20% of that life estate to a qualified

organization. You can claim a deduction for the

contribution if you do not have any other interest

in the property.

If the only interest you own in real property is

a remainder interest in a personal residence or

farm and you give your entire remainder interest

to a qualifying charity, see Annuities, Interests

for Life or Terms of Years, Remainders, and Reversions above, for information on how to value

that remainder interest.

Note: No income tax deduction is available

if you give part of your remainder interest in any

kind of property. See Partial Interest in Property

Not in Trust, above.

Qualified Conservation

Contribution

A qualified conservation contribution is a contribution of a qualified real property interest to a

qualified organization to be used only for conservation purposes as defined in section 170(h)

(4).

Qualified organization. For purposes of a

qualified conservation contribution, a qualified

organization is:

• A governmental unit;

• A publicly supported charitable, religious,

scientific, literary, educational, etc., organization; or

• An organization that is controlled by and

operated for the exclusive benefit of a

7

governmental unit or a publicly supported

charity.

The organization must also have a commitment

to protect the conservation purposes of the donation and must have the resources to enforce

the restrictions.

Note: A qualified organization is one of a

certain group of charities that qualifies under

section 170(c) for an income tax charitable contribution deduction.

Conservation purposes. Your contribution

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

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

public.

• Protecting a relatively natural habitat of

fish, wildlife, or plants or a similar ecosystem.

• Preserving open space, including farmland

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

enjoyment of the general public or under a

clearly defined federal, state, or local governmental conservation policy.

• Preserving a historically important land

area or a certified historic structure. There

must be some visual public access to the

property. Factors used in determining the

type and amount of public access required

include the historical significance of the

property, the remoteness or accessibility of

the site, and the extent to which intrusions

on the privacy of individuals living on the

property would be unreasonable.

Certified historic structures. There are two

types of buildings that may be certified historic

structures: a National Register building and a

registered historic district building. A National

Register building and a historic district building

can be certified by the Department of the Interior as a certified historic structure. A National

Register building is an individual building that is

listed in the National Register of Historic Places

(“National Register”). If the building is the only

building in the listing in the National Register, no

certification is necessary by the Department of

the Interior; the building is a certified historic

structure. Alternatively, if the listing in the National Register consists of more than one building (for example, a house, a garage, a mill complex, etc.), the Secretary of the Interior must

certify which of the multiple buildings is the certified historic structure.

A registered historic district building is an individual building that is located in a registered

historic district and has been separately certified by the Secretary of the Interior as a certified

historic structure. The mere listing of the building as contributing to a registered historic district is not sufficient. A registered historic district

is any district listed in the National Register.

Charitable contribution deduction for donation of a qualified conservation contribution. No deduction is available unless the National Register building or the registered historic

district building is a certified historic structure.

Most qualified conservation contribution donations claimed are in the form of a qualified real

8

property interest that is a perpetual easement or

other restriction (“easement”).

1. Form 8283, completed as specified in its

instructions;

registered historic district building for any of the

5 years before the year of the qualified conservation contribution donation, your charitable

contribution deduction is reduced. For more information, see Form 3468, Investment Credit

(and its instructions), and section 170(f)(14).

For more information on how an NPS # applies to a certified historic structure, see Easements on certified historic structures, in the

Instructions for Form 8283.

2. A signed Qualified Appraisal, performed

by a Qualified appraiser; and

Qualified real property interest. This is any

of the following interests in real property.

3. The National Park Service project number

(NPS #), if applicable. See the Instructions

for Form 8283 for more information.

1. Your entire interest in real estate other

than a mineral interest (subsurface oil,

gas, or other minerals, and the right of access to these minerals).

National Register building. You can claim a

deduction for the donation of an easement on

all or part of the interior or exterior of a National

Register building. You must include with your return:

Registered historic district building. You

can claim a deduction for the donation of an

easement on all or part of the interior of a registered historic district building. You cannot claim

a deduction for the donation of an easement on

the exterior of the building unless the restriction

meets all of the following conditions:

1. The restriction must preserve the entire

exterior of the building (including its front,

sides, rear, and height) and must prohibit

any change to the exterior of the building

that is inconsistent with its historical character;

2. You and the organization receiving the

contribution must enter into a written

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

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

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

b. Has the resources to manage and enforce the restriction and a commitment to do so; and

3. You must include with your return:

a. Form 8283, completed as specified in

the Instructions for Form 8283;

b. A signed Qualified Appraisal, performed by a Qualified appraiser;

c. Photographs of the building’s entire

exterior;

d. A description of all restrictions on development of the building, such as

zoning laws and restrictive covenants;

and

e. The National Park Service project

number (NPS #), if applicable. See

the Instructions for Form 8283 for

more information.

If the claimed donation exceeds $10,000,

you must include a $500 filing fee and a Form

8283-V, Payment Voucher for Filing Fee Under

Section 170(f)(13). If you choose to pay this fee

electronically, you do not need to send in Form

8283-V. Go to IRS.gov/Payments to see all of

your payment options. See the instructions for

Form 8283-V for more information. Your deduction will generally be disallowed if you fail to

comply with this requirement.

Rehabilitation credit. If you claim a rehabilitation credit on a National Register building or

2. A remainder interest.

3. A restriction (granted in perpetuity) on the

use that may be made of the real property,

also commonly known as an easement, a

restrictive covenant, an equitable servitude, or a perpetual conservation restriction, depending upon terminology applicable where the real property is located. See

Regulations section 1.170A-14(b)(2) for

further information.

Valuation. A qualified real property interest

described in (1) above consists of the following.

• Your entire interest in real property with you

retaining a qualified mineral interest, or

your entire interest in the real property

when someone else owns the qualified

mineral interest; and the probability of surface mining occurring is so remote as to be

negligible. A qualified mineral interest

gives you the right to access subsurface

oil, gas, or other minerals. You determine

the FMV of the real property absent the

qualified mineral interest in the same manner that you determine the FMV of real estate. See Real Estate, earlier.

• A remainder interest in real property.

• A conservation restriction (granted in perpetuity) on the use which may be made of

real property.

The value of the charitable contribution of a

perpetual conservation restriction (conservation

easement) is the FMV of the easement at the

time of the contribution. In determining the FMV

of a conservation easement, if there is a substantial record of arm’s-length sales of conservation easements on other properties that are

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

the selling price of these easements. If there are

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

as the difference between the FMVs of the

property before and after the grant of the conservation easement. The FMV of the property

before the grant of the conservation easement

must take into account not only the current use

of the property but also an objective assessment of how immediate or remote the likelihood

is that the property, without the easement,

would be developed. In determining whether

the property could be developed, you must also

consider any zoning, conservation, or historical

preservation laws that would already restrict the

property’s potential highest and best use.

Publication 561 (12-2025)

Finally, if a potential highest and best use is

being considered that would require a change

in zoning or other restrictions on the property,

you must address whether it is reasonably probable that such a change would be permitted.

Granting a conservation easement may increase, rather than reduce, the value of property, and in such a situation no deduction would

be allowed.

Example. You own 10 acres of land. Similar land in the area has an FMV of $2,000 an

acre. However, land in the general area that is

restricted solely to farm use has an FMV of

$1,500 an acre. Your county wants to preserve

open space and prevent further development in

your area.

You grant to the county an enforceable open

space easement in perpetuity on 8 of the 10

acres, restricting its use to farmland. The value

of this easement is $4,000, determined as follows.

FMV of the property before

granting easement:

$2,000 × 10 acres . . . . . . . . . . . . . . . .

Minus:

FMV of the property after

granting easement:

$1,500 × 8 acres . . . . . . . . .

$12,000

$2,000 × 2 acres . . . . . . . . .

4,000

Value of easement

. . . . . . . . . .

$20,000

16,000

$4,000

If you later transfer in fee your remaining interest in the 8 acres to another qualified organization, the FMV of your remaining interest is the

FMV of the 8 acres reduced by the FMV of the

easement granted to the first organization.

Disallowance of deductions for certain conservation contributions by partnerships or

S corporations. Subject to three exceptions,

if you are an ultimate member of a partnership

or an S corporation and the amount of the partnership’s or S corporation’s qualified conservation contribution exceeds 2.5 times the sum of

each ultimate member’s relevant basis, the contribution is not treated as a qualified conservation contribution and no one may claim a deduction for the contribution (section 170(h)(7)

disallowance rule). Thus, your charitable conservation contribution deduction is disallowed.

The term “ultimate member” means, with respect to any partnership or S corporation, any

partner (that is not itself a partnership or S corporation) or S corporation shareholder that receives a distributive share or pro rata share, directly or indirectly (through one or more

upper-tier partnerships or upper-tier S corporations), of a qualified conservation contribution.

Relevant basis is, with respect to any ultimate member, the portion of the ultimate member’s modified basis that is allocable to the portion of the real property with respect to which

the qualified conservation contribution is made.

An upper-tier partnership or upper-tier S corporation is a partnership or S corporation that

does not itself make the contribution but instead

receives an allocated portion of a qualified conservation contribution from another partnership.

The term “allocated portion” simply means a

distributive share of a qualified conservation

contribution made by a lower-tier partnership.

Publication 561 (12-2025)

If the amount of a contributing partnership’s

or contributing S corporation’s qualified conservation contribution exceeds 2.5 times the sum

of each ultimate member’s relevant basis, the

contribution is not treated as a qualified conservation contribution with respect to the contributing partnership or contributing S corporation,

any upper-tier partnership or upper-tier S corporation, or any ultimate member. No one may

claim a deduction for the contribution. With respect to a contributing partnership or contributing S corporation, the amount of the contribution is generally the amount claimed on the

return of the contributing partnership or contributing S corporation.

If the amount of a contributing partnership’s

or contributing S corporation’s qualified conservation contribution equals or is less than 2.5

times the sum of each ultimate member’s relevant basis, then any upper-tier partnership or

upper-tier S corporation must determine

whether the section 170(h)(7) disallowance rule

applies to its allocated portion of the qualified

conservation contribution.

The contributing partnership or contributing

S corporation must determine each ultimate

member’s relevant basis. That determination

will require information from any upper-tier partnership or upper-tier S corporation and may

also require information from ultimate members.

See Instructions for Form 8283 and Pub.

526 and Regulations section 1.170A-14(j)

through (n) for more details on the section

170(h)(7) disallowance rule, including guidance

on the computation of modified basis and relevant basis, application of the section 170(h)(7)

disallowance rule in tiered structures, and the

three exceptions to the section 170(h)(7) disallowance rule.

More information. For more information

about qualified conservation contributions, see

Instructions for Form 8283 and Pub. 526.

Substantiation of

Noncash Charitable

Contributions

What you need to substantiate your income tax

charitable contribution deduction depends upon

the property being donated and the claimed

value of this property. There are three types of

documents that may be required in order to

substantiate your contribution.

• Contemporaneous Written Acknowledgment (CWA).

• Form 8283.

• An appraisal, which in certain cases must

be a “qualified appraisal,” completed by a

“qualified appraiser.”

CWA. You must get a CWA from the charity to

which you contributed property on or before the

earlier of the date on which you file a return reporting the donation or the due date (including

extensions) for filing such return.

CWA must include the following:

1. The name of the organization;

2. The amount of any monetary contribution;

3. A description (but not the FMV) of any

contribution of property;

4. A statement that no goods or services

were provided by the organization in return

for the contribution, if that was the case;

5. If the organization did provide goods or

services in return for the contribution, a

description and good faith estimate of the

FMV of the goods or services; and

6. If the organization only provided intangible

religious benefits (described later in this

publication) in return for the contribution, a

statement so providing.

See Pub. 1771 for examples of CWAs.

Form 8283. You must file a Form 8283 if the

amount of your deduction for each noncash

contribution is more than $500, and when you

donate certain publicly traded securities for

which market quotations are readily available;

certain intellectual property, like a patent; a vehicle for which you obtained a CWA meeting the

requirements of section 170(f)(12)(B) (including

a car, boat, or airplane) for which your deduction is limited to the gross proceeds from its

sale; and inventory and other similar property

described in section 1221(a)(1). You must also

file a Form 8283 if you have a group of similar

items for which a total deduction of over $500 is

claimed. See Form 8283 below.

Similar items of property are items of the

same general category or type, such as coin

collections, paintings, books, clothing, jewelry,

nonpublicly traded stock, land, or buildings.

Example. You claimed a deduction of $600

for inventory, $7,000 for publicly traded securities (quotations published daily), and $6,000 for

a collection of 15 books ($400 each).

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

by a qualified appraiser. See Qualified appraiser

and Qualified Appraisal, later.

A qualified appraisal is not required for the

donation of:

• Certain publicly traded securities for which

market quotations are readily available;

• Certain intellectual property, like a patent;

• A vehicle for which you obtained a CWA

meeting the requirements of section 170(f)

(12)(B) (including a car, boat, or airplane)

for which your deduction is limited to the

gross proceeds from its sale;

• Inventory and other similar property described in section 1221(a)(1); and

• Noncash property valued at less than

$5,000 unless the property is an item of

clothing or a household item that is not in

good used condition for which you are

claiming a value of more than $500.

The appraiser’s opinion is never more valid

than the facts on which it is based; without

these facts, it is simply a guess.

Even when a qualified appraisal by a qualified appraiser is not required, you must support

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

9

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

an appraiser.

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

appraisals of your donated property.

Donation less than $5,000. If you give property worth less than $250 to charity, you should

obtain a receipt from the charity. The receipt

should include the charity’s name and address,

and the date you made the gift. If you give property worth between $250 and $5,000, you must

obtain a CWA. You must also substantiate the

FMV you claim for the property. You may need

to file a Form 8283.

Deduction over $500 for certain clothing or

household items. You must include with your

return a qualified appraisal prepared by a qualified appraiser of any single item of clothing or

any household item that is not in good used

condition or better and for which you deduct

more than $500. Attach the appraisal and Form

8283. See Household Items and Used Clothing,

earlier. You must also obtain a CWA for this

donation.

Deductions of More Than

$5,000

Generally, if the claimed deduction for an item

or group of similar items of donated property is

more than $5,000 and was made after December 31, 1984, you must:

• Obtain a qualified appraisal signed and

dated by a qualified appraiser, and

• Complete and attach Form 8283 to your

tax return.

There are exceptions, discussed later. You

should keep the appraiser’s report with your

written records. Records are discussed in Pub.

526. You must also obtain a CWA for this donation.

The phrase “similar items” means property

of the same generic category or type (whether

or not donated to the same donee), such as

stamps, coins, fine art, books, nonpublicly traded stock, nonpublicly traded securities other

than nonpublicly traded stock, land, buildings,

clothing, jewelry, furniture, household goods,

collectibles, or decorative arts. For example, if

you give books to three schools and you deduct

$2,000, $2,500, and $900, respectively, your

claimed deduction is more than $5,000 for

these books. You must get a qualified appraisal

of the books and for each school you must attach a fully completed Form 8283, Section B, to

your tax return.

Publicly traded securities. Publicly traded

securities are securities that have market quotations that are readily available on an established

securities market. The requirement is met if the

securities are:

• Listed on a stock exchange in which quotations are published on a daily basis,

• Regularly traded in a national or regional

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

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

10

are published on a daily basis in a newspaper of general circulation throughout the

United States.

An issue of a security that does not meet the

requirements just listed will be considered to

have market quotations readily available if:

1. The issue is regularly traded during the

computation period (defined later) in a

market for which there is an “interdealer

quotation system” (defined later);

2. The issuer or agent computes the “average trading price” (defined later) for the

same issue for the computation period;

3. The average trading price and total volume

of the issue during the computation period

are published in a newspaper of general

circulation throughout the United States,

not later than the last day of the month following the end of the calendar quarter in

which the computation period ends;

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

the computation period the date of settlement of the transaction, the name and address of the broker or dealer making the

market in which the transaction occurred,

and the trading price and volume; and

5. The issuer or agent permits the IRS to review the books and records described in

the above bullet point with respect to

transactions during the computation period upon receiving reasonable notice.

An interdealer quotation system is any system of general circulation to brokers and dealers that regularly disseminates quotations of

obligations by two or more identified brokers or

dealers who are not related to either the issuer

or agent who computes the average trading

price of the security. A quotation sheet prepared

and distributed by a broker or dealer in the regular course of business and containing only

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

The average trading price is the average

price of all transactions (weighted by volume),

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

broker or dealer who maintains a market in the

issue of the security during the computation period. Bid and asked quotations are not taken

into account.

The computation period is weekly during

October through December and monthly during

January through September. The weekly computation periods during October through December begin with the first Monday in October

and end with the first Sunday following the last

Monday in December.

Deductions of More Than

$500,000

If you claim a deduction of more than $500,000

for a donation of property, you must attach a

qualified appraisal of the property to your return.

This does not apply to contributions of cash, inventory, publicly traded stock, or intellectual

property.

If you do not obtain a qualified appraisal

and/or attach the appraisal to your return, if required, you cannot deduct your contribution, unless your failure to attach the appraisal is due to

reasonable cause and not to willful neglect.

Qualified Appraisal

A qualified appraisal is an appraisal document

that meets the following requirements.

• Is made, signed, and dated by a qualified

appraiser (defined later) in accordance

with the substance and principles of the

Uniform Standards of Professional Appraisal Practice.

• Meets the relevant requirements of Regulations section 1.170A-17(a).

• Is signed by the qualified appraiser and

dated no earlier than 60 days before the

date of the contribution and no later than

the due date, including extensions, of the

return on which the deduction for the contribution is first claimed. For an appraisal

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

no earlier than 60 days before the date of

the contribution and no later than the date

of the contribution. For an appraisal report

dated on or after the date of the contribution, the valuation effective date must be

the date of the contribution.

• Does not involve a prohibited appraisal fee.

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

return on which a charitable contribution deduction is first claimed for the donated property. If

the deduction is first claimed on an amended

return, the qualified appraisal must be received

before the date on which the amended return is

filed. An appraisal is not a qualified appraisal if

you fail to disclose or you misrepresent facts to

your appraiser and a reasonable person would

expect this failure or misrepresentation to cause

the appraiser to misstate the value of the property you contributed.

Form 8283 must be completed and attached

to your tax return. Generally, you do not need to

attach the qualified appraisal itself, but you

should keep a copy as long as it may be relevant under the tax law. There are four exceptions.

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

more for donations of art, you should attach a complete copy of the appraisal. See

Art and Collectibles, earlier.

• If you claim a deduction of more than

$500,000 for a donation of property, you

must attach the appraisal. See Deductions

of More Than $500,000, earlier.

• If you claim a deduction of more than $500

for an article of clothing or a household

item that is not in good used condition or

better, you must attach the appraisal. See

Deduction over $500 for certain clothing or

household items, earlier.

• If you claim a deduction for an easement or

other restriction on the exterior of a building in a historic district, you must attach the

appraisal. See Certified historic structures,

earlier.

Publication 561 (12-2025)

Prohibited appraisal fee. Generally, no part

of the fee arrangement for a qualified appraisal

can be based on a percentage of the appraised

value of the property. If a fee arrangement is

based on what is allowed as a deduction, after

IRS examination or otherwise, it is treated as a

fee based on a percentage of appraised value.

Information included in qualified appraisal.

A qualified appraisal must include the following

information.

1. A description of the property in sufficient

detail for a person who is not generally familiar with the type of property to determine that the property appraised is the

property that was (or will be) contributed.

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

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

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

entered into) by or on behalf of the donor

and donee that relates to the use, sale, or

other disposition of the donated property,

including, for example, the terms of any

agreement or understanding that:

a. Temporarily or permanently restricts a

donee’s right to use or dispose of the

donated property;

b. Earmarks donated property for a particular use; or

c. Reserves to or confers upon anyone

(other than a donee organization or an

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

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

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

having the income, possession, or

right to acquire the property.

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

an employee, or an independent contractor engaged by a person other than the

donor, the name, address, and TIN of the

partnership or the person who employs or

engages the appraiser.

6. The qualifications of the qualified appraiser who signs the appraisal to value

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

professional appraisal associations.

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

8. The declaration required by Regulations

section 1.170A-17(a)(3)(vi).

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

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

approach, cost approach, or income approach.

Publication 561 (12-2025)

11. The specific basis for the valuation, such

as any specific comparable sales transaction.

12. The report completion date.

Art objects. The following are examples of

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

all of the following.

1. A complete description of the art object,

including but not limited to:

a. Artist/maker name/originating culture;

b. Title;

c. Medium of art object and support;

d. Date of creation (and printing date, as

appropriate);

e. Dimensions;

f. Signature information;

g. Foundry marks and stamps (for sculpture);

h. Hallmarks and weights (for works

made of silver);

i. If the photograph, print, sculpture, or

other art object is available in multiples, indicate the dimensions and

other sizes the art object is available,

along with the specific edition number

and total number made in the edition;

j. Condition, including a condition report

by a professional conservator if condition affects the art object's value; and

k. Any other characteristics that would

impact the value of the property.

2. The cost, date, and manner of acquisition.

3. A history of the item’s prior ownership

(provenance).

4. The exhibition history of the object.

5. Authenticity documentation. Reasonable

due diligence should include an annotated

listing of all the known works of an artist

(catalogue raisonné) citations, foundation

numbers, and/or letters from a recognized

expert, when warranted.

6. A professional quality digital color image

of the item.

7. The facts on which the appraisal was

based, such as:

a. Identification and analysis of the

item’s value characteristics;

b. Comparable sales of similar works by

the artist which were sold in a time period close to the valuation date;

c. The economic state of the art market

at the time of valuation, particularly

with respect to the specific property;

and

d. The standing of the artist in their profession and in the particular artistic

school or time period.

Number of qualified appraisals. A separate qualified appraisal is required for each item

of property that is not included in a group of

similar items of property. You need only one

qualified appraisal for a group of similar items of

property contributed in the same tax year, but

you may get separate appraisals for each item.

A qualified appraisal for a group of similar items

must provide all of the required information for

each item of similar property. The appraiser,

however, may provide a group description for

selected items the total value of which is not

more than $100.

Qualified appraiser. A qualified appraiser is

an individual with verifiable education and experience in valuing the type of property for which

the appraisal is performed.

1. The individual:

a. Has earned an appraisal designation

from a generally recognized professional appraiser organization, for the

type of property being valued; or

b. Has met certain minimum education

requirements and 2 or more years of

experience in valuing the type of property being valued. To meet the minimum education requirement, the individual must have successfully

completed professional or college-level coursework obtained from:

i. A professional or college-level

educational organization,

ii. A professional trade or appraiser

organization that regularly offers

educational programs in valuing

the type of property, or

iii. An employer as part of an employee apprenticeship or education program similar to professional or college-level courses.

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

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

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

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

qualified to make appraisals of the type of property being valued. The appraiser must complete

the Declaration of Appraiser section on Form

8283, Section B. More than one appraiser may

appraise the property, provided that each complies with the requirements, including signing

the qualified appraisal and the Declaration of

Appraiser section on Form 8283, Section B.

Excluded individuals. The following individuals cannot be qualified appraisers for the

donated property.

1. The donor of the property or the taxpayer

who claims the deduction.

2. The donee of the property.

3. A party to the transaction in which the donor acquired the property being appraised,

unless the property is donated within 2

months of the date of acquisition and its

appraised value is not more than its acquisition price. This applies to the person

who sold, exchanged, or gave the property

to the donor, or any person who acted as

11

an agent for the transferor or donor in the

transaction.

4. Any person employed by any of the above

persons. For example, if the donor acquired a painting from an art dealer, neither the dealer nor persons employed by

the dealer can be qualified appraisers for

that painting.

5. Any person related under section 267(b)

of the Internal Revenue Code to any of the

above persons or married to a person related under section 267(b) to any of the

above persons.

6. An appraiser who appraises regularly for a

person in (1), (2), or (3) and who does not

perform a majority of their appraisals

made during their tax year for other persons.

7. An individual who receives a prohibited

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

earlier.

8. An individual who is prohibited from practicing before the IRS under section 330(c)

of title 31 of the United States Code at any

time during the 3-year period ending on

the date the appraisal is signed by the individual.

In addition, an individual is not a qualified

appraiser for a particular donation if the donor

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

falsely overstate the value of the donated property. For example, if the donor and the appraiser

make an agreement concerning the amount at

which the property will be valued, and the donor

knows that amount is more than the FMV of the

property, the appraiser is not a qualified appraiser for the donation.

Appraiser penalties. An appraiser who

prepares an incorrect appraisal may have to pay

a penalty if the appraiser knows, or reasonably

should have known, the appraisal would be

used in connection with a return or claim for refund and the appraisal resulted in:

1. A substantial valuation misstatement,

2. A substantial estate or gift valuation understatement, or

3. A gross valuation misstatement.

The penalty imposed on the appraiser is the

smaller of:

1. The greater of:

a. 10% of the underpayment due to the

misstatement, or

b. $1,000; or

2. 125% of the gross income received for the

appraisal.

No penalty is imposed if the appraiser can

establish that the appraisal’s value is more likely

than not correct.

In addition, any appraiser who falsely or

fraudulently overstates the value of property described in a qualified appraisal of a Form 8283

that the appraiser has signed may be subject to

a civil penalty for aiding and abetting an

12

understatement of tax liability and may have

their appraisal disregarded.

the substantiation documents, such as the CWA

or Form 8283.

Form 8283

Penalty

Generally, if the claimed deduction for an item

of donated property is more than $5,000, you

must attach Form 8283 to your tax return and

complete Section B.

If you do not attach Form 8283 to your return

and complete Section B, the deduction will not

be allowed unless your failure was due to reasonable cause and not willful neglect, or was

due to a good faith omission.

You must attach a separate Form 8283 for

each item of contributed property that is not part

of a group of similar items. If you contribute similar items of property to the same donee organization, you need to attach only one Form 8283

for those items. If you contribute similar items of

property to more than one donee organization,

you must attach a separate form for each donee.

IRS Review of Appraisals

In reviewing an income tax return, the IRS may

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

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

• Contact the taxpayer to get more information;

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

• Refer the issue to Art Appraisal Services

(AAS), a department of professional appraisers who consults with the Commissioner’s Art Advisory Panel, a group of independent dealers and curators. A referral

to AAS is mandatory for fine and decorative art valued at $50,000 or more; or

• Contract with an independent appraiser to

appraise the property when the objects require appraisers of highly specialized experience and knowledge.

Responsibility of the IRS. The IRS is responsible for reviewing appraisals, but it is not responsible for making them. Supporting the FMV

listed on your return is your responsibility.

The IRS does not accept appraisals without

question. The IRS does not recognize any

particular appraiser or organization of appraisers.

Timing of IRS action. The IRS generally does

not approve valuations or appraisals before the

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

does not issue advance rulings approving or

disapproving such appraisals.

Exception. For a request submitted as described earlier under Art valued at $50,000 or

more, the IRS will issue a Statement of Value

that can be relied on by the donor of the item of

art.

The Statement of Value is a fee-based review of the taxpayer’s appraisal and claimed

value. It does not guarantee a taxpayer’s entitlement to a deduction nor does it substitute for

You may be liable for a penalty if you misstate

the value or adjusted basis of donated property.

20% penalty. The penalty is 20% of the underpayment of tax related to the misstatement

if:

• The value or adjusted basis claimed on the

return is 150% or more of the correct

amount, and

• You underpaid your tax by more than

$5,000 because of the misstatement.

40% penalty. The penalty is 40%, rather than

20%, if:

• The value or adjusted basis claimed on the

return is 200% or more of the correct

amount, and

• You underpaid your tax by more than

$5,000 because of the misstatement.

• Your deduction for a qualified conservation

contribution was disallowed and you underpaid your tax.

How To Get Tax Help

If you have questions about a tax issue; need

help preparing your tax return; or want to download free publications, forms, or instructions, go

to IRS.gov to find resources that can help you

right away.

Tax reform. Tax reform legislation impacting

federal taxes, credits, and deductions was

enacted in P.L. 119-21, commonly known as the

One Big Beautiful Bill Act, on July 4, 2025. Go

to IRS.gov/OBBB for more information and updates on how this legislation affects your taxes.

Preparing and filing your tax return. After

receiving all your wage and earnings statements (Forms W-2, W-2G, 1099-R, 1099-MISC,

1099-NEC, etc.); unemployment compensation

statements (by mail or in a digital format) or

other government payment statements (Form

1099-G); and interest, dividend, and retirement

statements from banks and investment firms

(Forms 1099), you have several options to

choose from to prepare and file your tax return.

You can prepare the tax return yourself, see if

you qualify for free tax preparation, or hire a tax

professional to prepare your return.

Free options for tax preparation. Your options for preparing and filing your return online

or in your local community, if you qualify, include

the following.

• Free File. This program lets you prepare

and file your federal individual income tax

return for free using software or Free File

Fillable Forms. However, state tax preparation may not be available through Free File.

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

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

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

people with low-to-moderate incomes,

Publication 561 (12-2025)

persons with disabilities, and limited-English-speaking taxpayers who need help

preparing their own tax returns. Go to

IRS.gov/VITA, download the free IRS2Go

app, or call 800-906-9887 for information

on free tax return preparation.

• TCE. The Tax Counseling for the Elderly

(TCE) program offers free tax help for all

taxpayers, particularly those who are 60

years of age and older. TCE volunteers

specialize in answering questions about

pensions and retirement-related issues

unique to seniors. Go to IRS.gov/TCE or

download the free IRS2Go app for information on free tax return preparation.

• MilTax. Members of the U.S. Armed

Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military OneSource. For more information, go to

MilitaryOneSource (MilitaryOneSource.mil/

MilTax).

Also, the IRS offers Free Fillable Forms,

which can be completed online and then

e-filed regardless of income.

Using online tools to help prepare your return. Go to IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant

(IRS.gov/EITCAssistant) determines if

you’re eligible for the earned income credit

(EITC).

• The Online EIN Application (IRS.gov/EIN)

helps you get an employer identification

number (EIN) at no cost.

• The Tax Withholding Estimator (IRS.gov/

W4App) makes it easier for you to estimate

the federal income tax you want your employer to withhold from your paycheck.

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

or tax due.

• The Sales Tax Deduction Calculator

(IRS.gov/SalesTax) figures the amount you

can claim if you itemize deductions on

Schedule A (Form 1040).

Getting answers to your tax questions. On IRS.gov, you can get

up-to-date information on current

events and changes in tax law.

• IRS.gov/Help: A variety of tools to help you

get answers to some of the most common

tax questions.

• IRS.gov/ITA: The Interactive Tax Assistant,

a tool that will ask you questions and,

based on your input, provide answers on a

number of tax topics.

• IRS.gov/Forms: Find forms, instructions,

and publications. You will find details on

the most recent tax changes and interactive links to help you find answers to your

questions.

• You may also be able to access tax information in your e-filing software.

Need someone to prepare your tax return?

There are various types of tax return preparers,

including enrolled agents, certified public accountants (CPAs), accountants, and many others who don’t have professional credentials. If

you choose to have someone prepare your tax

Publication 561 (12-2025)

return, choose that preparer wisely. A paid tax

preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

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

Although the tax preparer always signs

the return, you’re ultimately responsible

CAUTION for providing all the information required for the preparer to accurately prepare

your return and for the accuracy of every item

reported on the return. Anyone paid to prepare

tax returns for others should have a thorough

understanding of tax matters. For more information on how to choose a tax preparer, go to Tips

for Choosing a Tax Preparer on IRS.gov.

!

Employers can register to use Business

Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/

employer for fast, free, and secure W-2 filing options to CPAs, accountants, enrolled agents,

and individuals who process Form W-2, Wage

and Tax Statement; and Form W-2c, Corrected

Wage and Tax Statement.

Business tax account. If you are a sole proprietor, a partnership, an S corporation, a C corporation, or a single-member limited liability

company (LLC), you can view your tax information on record with the IRS and do more with a

business tax account. Go to IRS.gov/

BusinessAccount for more information.

IRS social media. Go to IRS.gov/SocialMedia

to see the various social media tools the IRS

uses to share the latest information on tax

changes, scam alerts, initiatives, products, and

services. At the IRS, privacy and security are

our highest priority. We use these tools to share

public information with you. Don’t post your social security number (SSN) or other confidential

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

The following IRS YouTube channels provide

short, informative videos on various tax-related

topics in English and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosASL.

Over-the-Phone Interpreter (OPI) Service.

The IRS offers the OPI Service to taxpayers

needing language interpretation. The OPI Service is available at Taxpayer Assistance Centers

(TACs), most IRS offices, and every VITA/TCE

tax return site. This service is available in Spanish, Mandarin, Cantonese, Korean, Vietnamese, Russian, and Haitian Creole.

Accessibility Helpline available for taxpayers with disabilities. Taxpayers who need information about accessibility services can call

833-690-0598. The Accessibility Helpline can

answer questions related to current and future

accessibility products and services available in

alternative media formats (for example,

braille-ready, large print, audio, etc.). The Accessibility Helpline does not have access to

your IRS account. For help with tax law, refunds,

or account-related issues, go to IRS.gov/

LetUsHelp.

Alternative media preference. Form 9000,

Alternative Media Preference, or Form

9000(SP) allows you to elect to receive certain

types of written correspondence in the following

formats.

• Standard Print.

•

•

•

•

•

Large Print.

Braille.

Audio (MP3).

Plain Text File (TXT).

Braille-Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the available disaster tax relief.

Getting tax forms and publications. Go to

IRS.gov/Forms to view, download, or print all

the forms, instructions, and publications you

may need. Or you can go to IRS.gov/

OrderForms to place an order.

Mobile-friendly forms. You’ll need an IRS

Online Account (OLA) to complete mobile-friendly forms that require signatures. You’ll

have the option to submit your form(s) online or

download a copy for mailing. You’ll need scans

of your documents to support your submission.

Go to IRS.gov/MobileFriendlyForms for more information.

Getting tax publications and instructions in

eBook format. Download and view most tax

publications and instructions (including the Instructions for Form 1040) on mobile devices as

eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple’s

iBooks for iPad. Our eBooks haven’t been tested on other dedicated eBook readers, and

eBook functionality may not operate as intended.

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

account.

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

• See payment plan details or apply for a

new payment plan.

• Make a payment or view 5 years of payment history and any pending or scheduled payments.

• Access your tax records, including key

data from your most recent tax return, and

transcripts.

• View digital copies of select notices from

the IRS.

• Approve or reject authorization requests

from tax professionals.

Get a transcript of your return. With an online account, you can access a variety of information to help you during the filing season. You

can get a transcript, review your most recently

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

IRS.gov/Account.

Tax Pro Account. This tool lets your tax professional submit an authorization request to access your individual taxpayer IRS OLA. For

13

more

information,

TaxProAccount.

go

to

IRS.gov/

Using direct deposit. The safest and easiest

way to receive a tax refund is to e-file and

choose direct deposit, which securely and electronically transfers your refund directly into your

financial account. Direct deposit also avoids the

possibility that your check could be lost, stolen,

destroyed, or returned undeliverable to the IRS.

Eight in 10 taxpayers use direct deposit to receive their refunds. If you don’t have a bank account, go to IRS.gov/DirectDeposit for more information on where to find a bank or credit

union that can open an account online.

Reporting and resolving your tax-related

identity theft issues.

• Tax-related identity theft happens when

someone steals your personal information

to commit tax fraud. Your taxes can be affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with tax-

payers by email, text messages (including

shortened links), telephone calls, or social

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

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

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

on identity theft and data security protection for taxpayers, tax professionals, and

businesses. If your SSN has been lost or

stolen or you suspect you’re a victim of

tax-related identity theft, you can learn

what steps you should take.

• Get an Identity Protection PIN (IP PIN). IP

PINs are six-digit numbers assigned to taxpayers to help prevent the misuse of their

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

with your SSN. To learn more, go to

IRS.gov/IPPIN.

Ways to check on the status of your refund.

• Go to IRS.gov/Refunds.

• Download the official IRS2Go app to your

mobile device to check your refund status.

• Call the automated refund hotline at

800-829-1954.

The IRS can’t issue refunds before

mid-February for returns that claimed

CAUTION the EITC or the additional child tax

credit (ACTC). This applies to the entire refund,

not just the portion associated with these credits.

!

Making a tax payment. The IRS recommends

paying electronically whenever possible. Options to pay electronically are included in the list

below. Payments of U.S. tax must be remitted to

the IRS in U.S. dollars. Digital assets are not

accepted. Go to IRS.gov/Payments for information on how to make a payment using any of the

following options.

• IRS Direct Pay: Pay taxes from your bank

account. It’s free and secure, and no

14

sign-in is required. You can change or cancel within 2 days of scheduled payment.

Debit Card, Credit Card, or Digital Wallet:

Choose an approved payment processor

to pay online or by phone.

Electronic Funds Withdrawal: Schedule a

payment when filing your federal taxes using tax return preparation software or

through a tax professional.

Electronic Federal Tax Payment System:

This is the best option for businesses. Enrollment is required.

Check or Money Order: Mail your payment

to the address listed on the notice or instructions.

Cash: You may be able to pay your taxes

with cash at a participating retail store.

Same-Day Wire: You may be able to do

same-day wire from your financial institution. Contact your financial institution for

availability, cost, and time frames.

•

•

•

•

•

•

Note: The IRS uses the latest encryption

technology to ensure that the electronic payments you make online, by phone, or from a

mobile device using the IRS2Go app are safe

and secure. Paying electronically is quick and

easy.

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

Payments for more information about your options.

• Apply for an online payment agreement

(IRS.gov/OPA) to meet your tax obligation

in monthly installments if you can’t pay

your taxes in full today. Once you complete

the online process, you will receive immediate notification of whether your agreement has been approved.

• Use the Offer in Compromise Pre-Qualifier

to see if you can settle your tax debt for

less than the full amount you owe. For

more information on the Offer in Compromise program, go to IRS.gov/OIC.

Filing an amended return. Go to IRS.gov/

1040X for information and updates.

Checking the status of your amended return. Go to IRS.gov/WMAR to track the status

of Form 1040-X amended returns.

It can take up to 3 weeks from the date

you filed your amended return for it to

CAUTION show up in our system, and processing

it can take up to 16 weeks.

!

Understanding an IRS notice or letter

you’ve received. Go to IRS.gov/Notices to find

additional information about responding to an

IRS notice or letter.

IRS Document Upload Tool. You may be

able to use the Document Upload Tool to respond digitally to eligible IRS notices and letters

by securely uploading required documents online through IRS.gov. For more information, go

to IRS.gov/DUT.

Schedule LEP. You can use Schedule LEP

(Form 1040), Request for Change in Language

Preference, to state a preference to receive notices, letters, or other written communications

from the IRS in an alternative language. You

may not immediately receive written communications in the requested language. The IRS’s

commitment to LEP taxpayers is part of a

multi-year timeline that began providing translations in 2023. You will continue to receive communications, including notices and letters, in

English until they are translated to your preferred language.

Contacting your local TAC. Keep in mind,

many questions can be answered on IRS.gov

without visiting a TAC. Go to IRS.gov/LetUsHelp

for the topics people ask about most. If you still

need help, TACs provide tax help when a tax issue can’t be handled online or by phone. All

TACs now provide service by appointment, so

you’ll know in advance that you can get the

service you need without long wait times. Before you visit, go to IRS.gov/TAC to find the

nearest TAC and to check hours, available services, and appointment options. Or, on the

IRS2Go app, under the Stay Connected tab,

choose the Contact Us option and click on “Local Offices.”

———————————————————

—————

Below is a message to you from the Taxpayer Advocate Service, an independent organization established by Congress.

The Taxpayer Advocate

Service (TAS) Is Here To

Help You

What Is the Taxpayer Advocate

Service?

The Taxpayer Advocate Service (TAS) is an in­

dependent organization within the Internal

Revenue Service (IRS). TAS helps taxpayers resolve problems with the IRS, makes administrative and legislative recommendations to prevent

or correct the problems, and protects taxpayer

rights. We work to ensure that every taxpayer is

treated fairly and that you know and understand

your rights under the Taxpayer Bill of Rights. We

are Your Voice at the IRS.

How Can TAS Help Me?

TAS can help you resolve problems that you

haven’t been able to resolve with the IRS on

your own. Always try to resolve your problem

with the IRS first, but if you can’t, then come to

TAS. Our services are free.

• TAS helps all taxpayers (and their representatives), including individuals, businesses, and exempt organizations. You

may be eligible for TAS help if your IRS

problem is causing financial difficulty, if

you’ve tried and been unable to resolve

your issue with the IRS, or if you believe an

IRS system, process, or procedure just

isn’t working as it should.

• To get help any time with general tax topics, visit www.TaxpayerAdvocate.IRS.gov.

The site can help you with common tax issues and situations, such as what to do if

you make a mistake on your return or if you

get a notice from the IRS.

• TAS works to resolve large-scale (systemic) problems that affect many

Publication 561 (12-2025)

taxpayers. You can report systemic issues

at www.IRS.gov/SAMS. (Be sure not to include any personal identifiable information.)

How Do I Contact TAS?

TAS has offices in every state, the District of

Columbia, and Puerto Rico. To find your local

advocate’s number:

• Go to www.TaxpayerAdvocate.IRS.gov/

Contact-Us,

Publication 561 (12-2025)

• Check your local directory, or

• Call TAS toll free at 877-777-4778.

What Are My Rights as a

Taxpayer?

rights, what they mean to you, and how they apply to specific situations you may encounter

with the IRS. TAS strives to protect taxpayer

rights and ensure the IRS is administering the

tax law in a fair and equitable way.

The Taxpayer Bill of Rights describes ten basic

rights that all taxpayers have when dealing with

the IRS. Go to www.TaxpayerAdvocate.IRS.gov/

Taxpayer-Rights for more information about the

15

Index

To help us develop a more useful index, please let us know if you have ideas for index entries.

See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

A

Aircraft 5

Annuities 7

Annuity contracts 7

Antiques 4

Appraisals 9

Cost of 10

IRS review of 12

Qualified appraisal 10

Art objects 4

Valued at $20,000 or more 4

Valued at $50,000 or more 4

Assistance (See Tax help)

B

Boats 5

Bonds 5

Books 5

Business, interest in 6

C

Cars 5

Certified historic structure 8

Clothing, used 4, 10

Coins 5

Collections:

Books 5

Coins 5

Stamps 5

Comparable properties, sales

of 3

Conservation contribution 8

Cost 2

Rate of increase or decrease 2

16

Terms of purchase or sale 2

D

Date of contribution 2

Deductions of more than

$5,000 10

Deductions of more than

$500,000 10

F

Fair market value 2

Comparable properties, sales

of 3

Cost 2

Date of contribution 2

Determining FMV 2

Opinions of professional

appraisers 3

Problems in determining FMV 3

Replacement cost 3

Form 8283 12

Future events, effect on value 3

G

Gems and jewelry 4

H

Household items 4, 10

I

Interest in a business 6

Inventory 5

IRS review of appraisals 12

Exception 12

L

Life insurance 7

M

Replacement cost 3

Reversion interests 7

S

Market conditions, effect on

value 3

Stamps 5

Statement of Value 12

Stocks 5

O

T

Opinions of professional

appraisers 3

Tax help 12

P

Used clothing 4, 10

Paintings 4

Partial interest 7

Past events, effect on value 4

Patents 5

Penalties:

Imposed on appraiser 12

Imposed on taxpayer 12

Publications (See Tax help)

Publicly traded securities 10

Q

Qualified appraisal 10

Qualified appraiser 11

Qualified conservation

contribution 7

R

Real estate 6

Registered historic district

building 8

Remainder interests 7

U

V

Valuation of property 4

Annuities 7

Art and Collectibles 4

Cars, boats, and aircraft 5

Collectibles 4

Gems and jewelry 4

Household items 4

Interest in a business 6

Inventory 5

Life insurance and annuity

contracts 7

Partial interest in property 7

Patents 5

Real estate 6

Remainder interests 7

Reversion interests 7

Stocks and bonds 5

Terms of years 7

Used clothing 4

Publication 561 (12-2025)