Tangible Personal Property

 
As we noted, tangible personal property can make a great gift to Campbell.  Examples of “tangible personal property” are works of art; furniture; equipment; collections of rare stamps or coins, or other valuable collectibles; jewelry; and vehicles, such as automobiles, boats, or airplanes. 

Features & Benefits of Making Gifts of Tangible Personal Property 

Charitable deduction for “related use.”   Generally, gifts of tangible personal property which you have owned for more than one year are deductible as charitable deductions on your income tax return at their full fair market value if Campbell is going to put such gifted property to a use related to Campbell’s tax-exempt purpose and educational mission.   

Deductibility for “related use.”   Such gifts are deductible up to 30% of your federal adjusted gross income for the year (and if your gifts of tangible personal property exceed that 30%, then you may deduct the excess over the following five years, again up to 30% of your adjusted gross income for each carry-over year). 

Charitable deduction for “unrelated use.”   If such gifted property is not related to Campbell’s purpose and mission (for example, Campbell can’t use the gifted property and therefore simply plans to sell such property as soon as it’s received), then the value of such property for purposes of your income tax charitable deduction is limited to the fair market value of such gifted property or your cost basis in that property – whichever is less.   

Deductibility for “unrelated use.”   But, the deductibility of your gifts of tangible personal property in such cases rises to 50% of your adjusted gross income, with a five-year carryover. 

Here’s a special note regarding works of art…while works of art are certainly tangible personal property and may have a “related use” at Campbell, if a work of art is being gifted by the artist who created it, then generally the value for income tax charitable deduction purposes is limited to the fair market value of the work of art or the artist’s cost basis in the work of art – whichever is less.  But in such a case, the deductibility of the gifted work of art is 50% of the artist’s adjusted gross income, with a five-year carryover. 

How it’s done.   Gifts of tangible personal property are made on the date the property is physically delivered to Campbell; or, if documents of title are necessary to effect delivery of the property to Campbell, then the date such documents are completed. 

Appraisal requirements.    If the value of your charitable deduction for your gift of tangible or intangible personal property is greater than $500, your income tax return must be accompanied by a completed federal Form 8283/Noncash Charitable Contributions detailing your gift of such property – we will supply that to you.  And if the value of such charitable deduction is greater than $5,000, you must obtain an independent qualified appraisal of your gifted personal property to accompany your Form 8283 in order to substantiate your income tax charitable deduction – we’ll help you get one. 

Special note concerning personal property gifted by Bequest.   The rules discussed above – especially those “related use” rules – only apply to gifts of personal property made during your life for which you seek an income tax charitable deduction.  Gifts of tangible or intangible personal property made at your death through a bequest in your Will or Trust are fully deductible for estate and gift tax purposes at their full fair market value.  

Contact person.   If you would like to make a lifetime gift of personal property having an estimated value of $5,000 or more, or if you simply have any questions about gifts of personal property, please call Jerry Wood, at 1-800-334-4111, extension 1219, or email him at wood@campbell.edu.

 

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