1. When an appraisal is legally required
Under IRC § 170(f)(11), a taxpayer claiming a deduction of more than $5,000 for a single donated item — including a vehicle — must obtain a signed qualified appraisal and complete Section B of Form 8283. Below $5,000, lighter substantiation rules apply instead (generally a written acknowledgment from the charity), and no formal appraisal is required.
The $5,000 threshold applies per item, not per return — so a single donated vehicle worth $6,000 triggers the requirement even if it's the only significant donation on the return that year.
2. What makes an appraiser "qualified"
This isn't a formality — the IRS defines it specifically, in 26 CFR § 1.170A-17(b). A qualified appraiser is someone with verifiable education and experience valuing that particular type of property, who as of the date they sign the appraisal has either:
- Earned a recognized appraisal designation for the relevant property type, or
- Completed professional or college-level coursework in valuing that property type, plus two or more years of documented experience valuing it.
The appraisal must also follow "generally accepted appraisal standards" — which the regulation defines as the substance and principles of USPAP, the same standard every Veride report is already built to. The appraiser also can't be the donor, the recipient charity, anyone employed by or related to either, or anyone otherwise excluded under the regulation — the independence requirement is explicit, not incidental.
3. If the charity sells the vehicle
Most donated vehicles are sold by the charity rather than used directly in its programs. When that happens without significant intervening use or material improvement by the charity, the donor's deduction is generally limited to the gross proceeds the charity actually received from the sale — not an independently appraised fair market value. In that specific situation, a formal qualified appraisal may not be required at all.
This is worth confirming with your tax preparer before ordering an appraisal — if the charity is going to sell the car through a standard donation-processing channel, the appraisal requirement may not apply the way it would for a vehicle the charity keeps and uses, or one still being processed at the time the return is filed.
4. Timing and the fee rule
- The appraisal window. It must be signed and dated no earlier than 60 days before the donation date, and no later than the due date — including extensions — of the return on which the deduction is first claimed.
- The fee can't move with the value. Under the regulation, a qualified appraisal's fee cannot be based on the appraised value in any way. Ours is a flat rate regardless of outcome — which is also simply the only way to avoid the appearance of an appraiser inflating a number to earn a bigger fee.
- Retention. The donor keeps the appraisal with their tax records; the appraiser's signed declaration goes on Form 8283 itself.
5. Completing Form 8283
Section B of Form 8283 has three parts: the donor's description of the property, the appraiser's declaration and signature, and the donee organization's acknowledgment of receipt. All three need to be completed before the donor files — the order they're signed in doesn't matter, but all three need to happen. We provide the signed appraiser section directly; coordinating the donor and donee portions is between you and the charity.
6. Frequently asked questions
Whenever the claimed deduction exceeds $5,000 for that single vehicle. Below that, simpler substantiation rules apply instead.
Verifiable education and experience in valuing that property type — a recognized appraisal designation, or documented coursework plus two or more years of relevant experience — and independence from the donor and the charity.
Yes — if the charity sells it without significant use or improvement, the deduction is generally limited to the actual sale proceeds, and a formal appraisal may not be required. Confirm this with a tax preparer first.
A flat fee, published on our pricing page — $350 for a standard vehicle, $595 for classic or collector. The fee never depends on what the vehicle turns out to be worth, by regulation and by principle.