TAX COURT SHOWS THAT YOU NEED TO FOLLOW THE RULES

For donated property the law is quite clear.  Failing to get a qualified appraisal for donated property and you lose the tax write-off, even if you value the property low. 

In this case, the Tax Court ruled that where a couple contributed five parcels of realty worth more than $10 million to a charitable remainder trust that they established could not get a charitable contribution.

The donations were made over a two-year period. Although they attached the proper Form 8283 to their returns, they didn’t obtain timely written appraisals from an outside expert or include an appraisal summary as required by the law. These omissions cost them the entire deduction, even though they undervalued their donations. 

This was not just a few items given to the Salvation Army.  This was land valued at over $1.8 million. (Mohamed, TC Memo. 2012-152)