§6050L — Returns relating to certain donated property
Statute Text — 26 U.S.C. §6050L
If the donee of any charitable deduction property sells, exchanges, or otherwise disposes of such property within 3 years after its receipt, the donee shall make a return (in accordance with forms and regulations prescribed by the Secretary) showing—
the name, address, and TIN of the donor,
a description of the property,
the date of the contribution,
the amount received on the disposition,
the date of such disposition,
a description of the donee’s use of the property, and
a statement indicating whether the use of the property was related to the purpose or function constituting the basis for the donee’s exemption under section 501.
In any case in which the donee indicates that the use of applicable property (as defined in section 170(e)(7)(C)) was related to the purpose or function constituting the basis for the exemption of the donee under section 501 under subparagraph (G), the donee shall include with the return the certification described in section 170(e)(7)(D) if such certification is made under section 170(e)(7).
For purposes of this subsection:
The term “charitable deduction property” means any property (other than publicly traded securities) contributed in a contribution for which a deduction was claimed under section 170 if the claimed value of such property (plus the claimed value of all similar items of property donated by the donor to 1 or more donees) exceeds $5,000.
The term “publicly traded securities” means securities for which (as of the date of the contribution) market quotations are readily available on an established securities market.
Each donee with respect to a qualified intellectual property contribution shall make a return (at such time and in such form and manner as the Secretary may by regulations prescribe) with respect to each specified taxable year of the donee showing—
the name, address, and TIN of the donor,
a description of the qualified intellectual property contributed,
the date of the contribution, and
the amount of net income of the donee for the taxable year which is properly allocable to the qualified intellectual property (determined without regard to paragraph (10)(B) of section 170(m) and with the modifications described in paragraphs (5) and (6) of such section).
For purposes of this subsection:
Terms used in this subsection which are also used in section 170(m) have the respective meanings given such terms in such section.
The term “specified taxable year” means, with respect to any qualified intellectual property contribution, any taxable year of the donee any portion of which is part of the 10-year period beginning on the date of such contribution.
Every person making a return under subsection (a) or (b) shall furnish a copy of such return to the donor at such time and in such manner as the Secretary may by regulations prescribe.
Treasury Regulations
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Treas. Reg. §1.6050L-1Information return by donees relating to certain dispositions of donated property
(a) Information returns—(1) Disposition of charitable deduction property. If a donee of any charitable deduction property (as defined in paragraph (e) of this section), sells, exchanges, consumes, or otherwise disposes of (with or without consideration) such property (or any portion thereof) within 2 years after the date of the donor's contribution of such property, the donee shall make an information return on the form prescribed by the Internal Revenue Service. For special rules with respect to successor donees, see paragraph (c) of this section.
(2) Disposition of items appraised for $500 or less—(i) In general. Paragraph (a)(1) of this section shall not apply with respect to an item of charitable deduction property disposed of by sale if the Form 8283 appraisal summary (as described in § 1.170A-13(c)(4) for contributions made on or before July 30, 2018 and § 1.170A-16(d)(3) for contributions made after July 30, 2018), or a successor form, signed by the donee with respect to the item contains, at the time of the donee's signature, a statement signed by the donor that the appraised value of the item does not exceed $500. In the case of a Form 8283 appraisal summary that describes more than one item, this exception shall apply only with respect to an item clearly identified as having an appraised value of $500 or less.
For purposes of this paragraph (a)(2)(i), items that form a set (such as, for example, a collection of books written by the same author, components of a stereo system, or a group of place settings of a pattern of silverware) are considered one item. In addition, all nonpublicly traded stock is considered one item as are all nonpublicly traded securities other than nonpublicly traded stock.
(ii) Transitional rule. Paragraph (a)(2)(i) of this section is satisfied with respect to an appraisal summary submitted to the donee on or before January 31, 1986, if such donee obtained the required statement from the donor on or before March 31, 1986, on either an amended appraisal summary or an attachment to the original appraisal summary.
(3) Consumption for distribution of exempt purpose. Paragraph (a)(1) of this section shall not apply with respect to an item of charitable deduction property consumed or distributed by a donee without consideration if the consumption or distribution is in furtherance of a purpose or function constituting a basis for such donee's exemption under section 501 of the Code. For example, no reporting is required with respect to medical supplies consumed or distributed by a tax-exempt relief organization in aiding disaster victims.
(b) Information required to be provided on return. The information return required by paragraph (a)(1) of this section shall include the following:
(1) The name, address, and employer identification number of the donee making the information return;
(2) A description of the property (or portion disposed of) in sufficient detail to identify the charitable deduction property received by such donee;
(3) The name and taxpayer identification number of the donor (social security number if the donor is an individual or employer identification number if the donor is a corporation or partnership);
(4) The date of the contribution to such donee;
(5) Any amount received by such donee with respect to the disposition;
(6) The date of the disposition by such donee; and
(7) Such other information as may be specified by the form or its instructions.
(c) Successor donees—(1) In general. Section 6050L and this section shall apply to successor donees that receive charitable deduction property (as defined in paragraph (e) of this section) that was transferred by the original donee after July 5, 1988, (whether the successor donee received the property from the original donee or another successor donee). For definitions of the terms “donor,” “donee,” “original donee,” and “successor donee,” see § 1.170A-13(c)(7)(iv)-(vii).
(2) Information required to be provided on return. With respect to charitable deduction property that is transferred to one or more successor donees to which this section applies, the information return required by paragraph (a)(1) of this section shall include, in addition to the information described in paragraph (b) of this section, the following:
(i) The name, address, and employer identification number of the immediately succeeding successor donee (if any) and the immediately preceding successor donee (if any);
(ii) The name, address, and employer identification number of the original donee if different from the information required by paragraph (b)(1) of this section;
(iii) The date of contribution to the original donee; and
(iv) Such other information as may be specified by the form or its instructions.
(3) Information to be provided to transferor. Every successor donee to which this section applies that receives any charitable deduction property within the 2-year period described in paragraph (a)(1) of this section shall provide its name, address, and employer identification number to that preceding donee on or before the 15th day after the later of—
(i) The date of transfer to such successor donee, or
(ii) The date such successor donee receives a copy of the appraisal summary from the preceding donee.
(4) Donees that transfer property to successor donees. In addition to complying with the requirements of paragraph (a)(1) of this section, every donee that transfers any charitable deduction property to a successor donee to which this section applies within the 2-year period described in paragraph (a)(1) of this section—
(i) Shall provide its name, address, and employer identification number and a copy of the Form 8283 appraisal summary (as described in § 1.170A-13(c)(4) for contributions made on or before July 30, 2018 and § 1.170A-16(d)(3) for contributions made after July 30, 2018) relating to the transferred property to the successor donee on or before the 15th day after the latest of—
(A) The date of such transfer, or
(B) The date the original donee signs the appraisal summary, or
(C) In a case in which the transferring donee is a successor donee, the date such donee receives a copy of the appraisal summary from such donee's transferor, and
(ii) Shall provide a copy of its information return required by paragraph (a)(1) this section to the successor donee on or before the 15th day after the transferring donee files the information return pursuant to paragraph (e)(2) of this section.
(5) Donee. In the case of charitable deduction property that is transferred to a successor donee to which this section applies, the term donee as used in paragraph (a)(2) and (e) of this section means only the original donee.
(d) Special rules—(1) Statement to be furnished to donors. Every donee making a return under section 6050L and this section with respect to the disposition of charitable deduction property shall furnish a copy of the return to the donor of the property.
(2) Retention of Form 8283 appraisal summary. Every donee shall retain the Form 8283 appraisal summary (as described in § 1.170A-13(c)(4) for contributions made on or before July 30, 2018 and § 1.170A-16(d)(3) for contributions made after July 30, 2018) in the donee's records for so long as it may be relevant in the administration of any internal revenue law.
(e) Charitable deduction property. For purposes of this section, the term charitable deduction property means any property (other than money and publicly traded securities to which § 1.170A-13(c)(7)(xi)(B) does not apply) contributed after December 31, 1984, with respect to which the donee signs (or is presented with for signature in cases described in § 1.170A-13(c)(4)(iv)(C)(2)) a Form 8283 appraisal summary (as described in § 1.170A-13(c)(4) for contributions made on or before July 30, 2018 and § 1.170A-16(d)(3) for contributions made after July 30, 2018).
For purposes of this section, if such donee signs (or is presented with for signature in cases described in § 1.170A-13(c)(4)(iv)(C)(2)) the appraisal summary after the date of contribution of the property, the property is deemed to be charitable deduction property from the date of contribution.
(f) Place and time for filing information returns—(1) Place for filing. The donee information return required by section 6050L and this section shall be filed with the Internal Revenue Service center listed on the return form or its instructions.
(2) Time for filing—(i) In general. Except as provided in paragraph (f)(2)(ii) of this section, the donee information return shall be filed on or before the 125th day after a donee sells, exchanges, consumes or otherwise disposes of the charitable deduction property. A donee information return filed pursuant to this paragraph (f)(2)(i) does not have to include the information required by paragraphs (b) (3), (4), (5), or (6), or (c)(2)(i)-(iii) of this section if such information is not available to the donee by the due date of the return.
(ii) Exception. Notwithstanding paragraph (f)(2)(i) of this section, in the case of a donee who, on the date of receipt of the transferred property, had no reason to believe that the substantiation requirements of § 1.170A-13(c) or § 1.170A-16(d) apply with respect to the property, the donee information return is not required to be filed until the 60th day after the date on which such donee has reason to believe that the substantiation requirements of § 1.170A-13(c) or § 1.170A-16(d) apply with respect to the property.
A donee information return filed pursuant to this paragraph (f)(2)(ii) does not have to include the information required by paragraph (b) (3), (4), (5), or (6), or (c)(2)(i)-(iii) of this section if such information is not available to the donee by the due date of the return.
(g) Penalties. For penalties for failure to compy with the requirements of this section, see sections 6676, 6721, and 6723.
(h) Effective/applicability dates. The first two sentences of paragraph (a)(2)(i), paragraphs (c)(4)(i) and (d)(2), and the first sentences of paragraphs (e) and (f)(2)(ii) apply to contributions made after July 30, 2018.
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Treas. Reg. §1.6050L-1(a)Information returns—(1) Disposition of charitable deduction property.
Information returns—(1) Disposition of charitable deduction property. If a donee of any charitable deduction property (as defined in paragraph (e) of this section), sells, exchanges, consumes, or otherwise disposes of (with or without consideration) such property (or any portion thereof) within 2 years after the date of the donor's contribution of such property, the donee shall make an information return on the form prescribed by the Internal Revenue Service. For special rules with respect to successor donees, see paragraph (c) of this section.
(2) Disposition of items appraised for $500 or less—(i) In general. Paragraph (a)(1) of this section shall not apply with respect to an item of charitable deduction property disposed of by sale if the Form 8283 appraisal summary (as described in § 1.170A-13(c)(4) for contributions made on or before July 30, 2018 and § 1.170A-16(d)(3) for contributions made after July 30, 2018), or a successor form, signed by the donee with respect to the item contains, at the time of the donee's signature, a statement signed by the donor that the appraised value of the item does not exceed $500. In the case of a Form 8283 appraisal summary that describes more than one item, this exception shall apply only with respect to an item clearly identified as having an appraised value of $500 or less.
For purposes of this paragraph (a)(2)(i), items that form a set (such as, for example, a collection of books written by the same author, components of a stereo system, or a group of place settings of a pattern of silverware) are considered one item. In addition, all nonpublicly traded stock is considered one item as are all nonpublicly traded securities other than nonpublicly traded stock.
(ii) Transitional rule. Paragraph (a)(2)(i) of this section is satisfied with respect to an appraisal summary submitted to the donee on or before January 31, 1986, if such donee obtained the required statement from the donor on or before March 31, 1986, on either an amended appraisal summary or an attachment to the original appraisal summary.
(3) Consumption for distribution of exempt purpose. Paragraph (a)(1) of this section shall not apply with respect to an item of charitable deduction property consumed or distributed by a donee without consideration if the consumption or distribution is in furtherance of a purpose or function constituting a basis for such donee's exemption under section 501 of the Code. For example, no reporting is required with respect to medical supplies consumed or distributed by a tax-exempt relief organization in aiding disaster victims.
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Treas. Reg. §1.6050L-1(b)Information required to be provided on return.
Information required to be provided on return. The information return required by paragraph (a)(1) of this section shall include the following:
(1) The name, address, and employer identification number of the donee making the information return;
(2) A description of the property (or portion disposed of) in sufficient detail to identify the charitable deduction property received by such donee;
(3) The name and taxpayer identification number of the donor (social security number if the donor is an individual or employer identification number if the donor is a corporation or partnership);
(4) The date of the contribution to such donee;
(5) Any amount received by such donee with respect to the disposition;
(6) The date of the disposition by such donee; and
(7) Such other information as may be specified by the form or its instructions.
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Treas. Reg. §1.6050L-1(c)Successor donees—(1) In general.
Successor donees—(1) In general. Section 6050L and this section shall apply to successor donees that receive charitable deduction property (as defined in paragraph (e) of this section) that was transferred by the original donee after July 5, 1988, (whether the successor donee received the property from the original donee or another successor donee). For definitions of the terms “donor,” “donee,” “original donee,” and “successor donee,” see § 1.170A-13(c)(7)(iv)-(vii).
(2) Information required to be provided on return. With respect to charitable deduction property that is transferred to one or more successor donees to which this section applies, the information return required by paragraph (a)(1) of this section shall include, in addition to the information described in paragraph (b) of this section, the following:
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Treas. Reg. §1.6050L-1(d)Special rules—(1) Statement to be furnished to donors.
Special rules—(1) Statement to be furnished to donors. Every donee making a return under section 6050L and this section with respect to the disposition of charitable deduction property shall furnish a copy of the return to the donor of the property.
(2) Retention of Form 8283 appraisal summary. Every donee shall retain the Form 8283 appraisal summary (as described in § 1.170A-13(c)(4) for contributions made on or before July 30, 2018 and § 1.170A-16(d)(3) for contributions made after July 30, 2018) in the donee's records for so long as it may be relevant in the administration of any internal revenue law.
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Treas. Reg. §1.6050L-1(e)Charitable deduction property.
Charitable deduction property. For purposes of this section, the term charitable deduction property means any property (other than money and publicly traded securities to which § 1.170A-13(c)(7)(xi)(B) does not apply) contributed after December 31, 1984, with respect to which the donee signs (or is presented with for signature in cases described in § 1.170A-13(c)(4)(iv)(C)(2)) a Form 8283 appraisal summary (as described in § 1.170A-13(c)(4) for contributions made on or before July 30, 2018 and § 1.170A-16(d)(3) for contributions made after July 30, 2018).
For purposes of this section, if such donee signs (or is presented with for signature in cases described in § 1.170A-13(c)(4)(iv)(C)(2)) the appraisal summary after the date of contribution of the property, the property is deemed to be charitable deduction property from the date of contribution.
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Treas. Reg. §1.6050L-1(f)Place and time for filing information returns—(1) Place for filing.
Place and time for filing information returns—(1) Place for filing. The donee information return required by section 6050L and this section shall be filed with the Internal Revenue Service center listed on the return form or its instructions.
(2) Time for filing—(i) In general. Except as provided in paragraph (f)(2)(ii) of this section, the donee information return shall be filed on or before the 125th day after a donee sells, exchanges, consumes or otherwise disposes of the charitable deduction property. A donee information return filed pursuant to this paragraph (f)(2)(i) does not have to include the information required by paragraphs (b) (3), (4), (5), or (6), or (c)(2)(i)-(iii) of this section if such information is not available to the donee by the due date of the return.
(ii) Exception. Notwithstanding paragraph (f)(2)(i) of this section, in the case of a donee who, on the date of receipt of the transferred property, had no reason to believe that the substantiation requirements of § 1.170A-13(c) or § 1.170A-16(d) apply with respect to the property, the donee information return is not required to be filed until the 60th day after the date on which such donee has reason to believe that the substantiation requirements of § 1.170A-13(c) or § 1.170A-16(d) apply with respect to the property.
A donee information return filed pursuant to this paragraph (f)(2)(ii) does not have to include the information required by paragraph (b) (3), (4), (5), or (6), or (c)(2)(i)-(iii) of this section if such information is not available to the donee by the due date of the return.
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Treas. Reg. §1.6050L-1(g)Penalties.
Penalties. For penalties for failure to compy with the requirements of this section, see sections 6676, 6721, and 6723.
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Treas. Reg. §1.6050L-1(h)Effective/applicability dates.
Effective/applicability dates. The first two sentences of paragraph (a)(2)(i), paragraphs (c)(4)(i) and (d)(2), and the first sentences of paragraphs (e) and (f)(2)(ii) apply to contributions made after July 30, 2018.
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Treas. Reg. §1.6050L-1(i)Shall provide its name, address, and employer identification number and a copy of the Form 8283 appraisal summary (as described in § 1.
Shall provide its name, address, and employer identification number and a copy of the Form 8283 appraisal summary (as described in § 1.170A-13(c)(4) for contributions made on or before July 30, 2018 and § 1.170A-16(d)(3) for contributions made after July 30, 2018) relating to the transferred property to the successor donee on or before the 15th day after the latest of—
(A) The date of such transfer, or
(B) The date the original donee signs the appraisal summary, or
(C) In a case in which the transferring donee is a successor donee, the date such donee receives a copy of the appraisal summary from such donee's transferor, and
(ii) Shall provide a copy of its information return required by paragraph (a)(1) this section to the successor donee on or before the 15th day after the transferring donee files the information return pursuant to paragraph (e)(2) of this section.
(5) Donee. In the case of charitable deduction property that is transferred to a successor donee to which this section applies, the term donee as used in paragraph (a)(2) and (e) of this section means only the original donee.
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Treas. Reg. §1.6050L-2Information returns by donees relating to qualified intellectual property contributions
(a) In general. Each donee organization described in section 170(c), except a private foundation (as defined in section 509(a)), other than a private foundation described in section 170(b)(1)(F), that receives or accrues net income during a taxable year from any qualified intellectual property contribution (as defined in section 170(m)(8)) must make an annual information return on the form prescribed by the IRS. The information return is required for any taxable year of the donee that includes any portion of the 10-year period beginning on the date of the contribution, but not for taxable years beginning after the expiration of the legal life of the qualified intellectual property.
(b) Information required to be provided on return. The information return required by section 6050L and paragraph (a) of this section shall include the following—
(1) The name, address, taxable year, and employer identification number of the donee making the information return;
(2) The name, address, and taxpayer identification number of the donor;
(3) A description of the qualified intellectual property in sufficient detail to identify the qualified intellectual property received by such donee;
(4) The date of the contribution to the donee;
(5) The amount of net income of the donee for the taxable year that is properly allocable to the qualified intellectual property (determined without regard to paragraph (10)(B) of section 170(m) and with the modifications described in paragraphs (5) and (6) of such section); and
(6) Such other information as may be specified by the form or its instructions.
(c) Special rule—statement to be furnished to donors. Every donee making an information return under section 6050L and this section with respect to a qualified intellectual property contribution shall furnish a copy of the information return to the donor of the property. The information return required by section 6050L and this section shall be furnished to the donor on or before the date the donee is required to file the return with the IRS.
(d) Place and time for filing information return—(1) Place for filing. The information return required by section 6050L and this section shall be filed with the IRS location listed on the prescribed form or in its instructions.
(2) Time for filing. A donee is required to file the return required by section 6050L and this section on or before the last day of the first full month following the close of the donee's taxable year to which net income from the qualified intellectual property is properly allocable.
(e) Penalties. For penalties for failure to comply with the requirements of this section, see sections 6721 through 6724.
(f) Effective/applicability date. The rules of this section apply to qualified intellectual property contributions made after June 3, 2004.
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Treas. Reg. §1.6050L-2(a)In general.
In general. Each donee organization described in section 170(c), except a private foundation (as defined in section 509(a)), other than a private foundation described in section 170(b)(1)(F), that receives or accrues net income during a taxable year from any qualified intellectual property contribution (as defined in section 170(m)(8)) must make an annual information return on the form prescribed by the IRS. The information return is required for any taxable year of the donee that includes any portion of the 10-year period beginning on the date of the contribution, but not for taxable years beginning after the expiration of the legal life of the qualified intellectual property.
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Treas. Reg. §1.6050L-2(b)Information required to be provided on return.
Information required to be provided on return. The information return required by section 6050L and paragraph (a) of this section shall include the following—
(1) The name, address, taxable year, and employer identification number of the donee making the information return;
(2) The name, address, and taxpayer identification number of the donor;
(3) A description of the qualified intellectual property in sufficient detail to identify the qualified intellectual property received by such donee;
(4) The date of the contribution to the donee;
(5) The amount of net income of the donee for the taxable year that is properly allocable to the qualified intellectual property (determined without regard to paragraph (10)(B) of section 170(m) and with the modifications described in paragraphs (5) and (6) of such section); and
(6) Such other information as may be specified by the form or its instructions.
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Treas. Reg. §1.6050L-2(c)Special rule—statement to be furnished to donors.
Special rule—statement to be furnished to donors. Every donee making an information return under section 6050L and this section with respect to a qualified intellectual property contribution shall furnish a copy of the information return to the donor of the property. The information return required by section 6050L and this section shall be furnished to the donor on or before the date the donee is required to file the return with the IRS.
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Treas. Reg. §1.6050L-2(d)Place and time for filing information return—(1) Place for filing.
Place and time for filing information return—(1) Place for filing. The information return required by section 6050L and this section shall be filed with the IRS location listed on the prescribed form or in its instructions.
(2) Time for filing. A donee is required to file the return required by section 6050L and this section on or before the last day of the first full month following the close of the donee's taxable year to which net income from the qualified intellectual property is properly allocable.
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Treas. Reg. §1.6050L-2(e)Penalties.
Penalties. For penalties for failure to comply with the requirements of this section, see sections 6721 through 6724.
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Treas. Reg. §1.6050L-2(f)Effective/applicability date.
Effective/applicability date. The rules of this section apply to qualified intellectual property contributions made after June 3, 2004.
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