[Code of Federal Regulations] [Title 26, Volume 13] [Revised as of April 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 26CFR] [Page 369-372] TITLE 26--INTERNAL REVENUE CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) Procedure and Administration--Table of Contents Sec. 1.6050L-1 Information 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 appraisal summary (as defined in Sec. 1.170A-13(c)(4)) 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 an appraisal [[Page 370]] 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 Sec. 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 [[Page 371]] (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 appraisal summary (as described in Sec. 1.170A-13(c)(4)) 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 appraisal summary. Every donee shall retain the appraisal summary described in Sec. 1.170A-13(c)(4) 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 Sec. 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 Sec. 1.170A-13(c)(4)(iv)(C)(2)) an appraisal summary (as required by Sec. 1.170A-13(c)(4)(i)(B)). For purposes of this section, if such donee signs (or is presented with for signature in cases described in Sec. 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 Sec. 1.170A-13(c) apply with respect to the property, the donee information return is not required to be filed until the 60th day after the later of May 5, 1988, or the date on which such donee has reason to believe that the substantiation requirements of Sec. 1.170A-13(c) 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. [[Page 372]] (g) Penalties. For penalties for failure to compy with the requirements of this section, see sections 6676, 6721, and 6723. [T.D. 8199, 53 FR 16085, May 5, 1988; T.D. 8199, 53 FR 18372, May 23, 1988]