Tax Benefits
Income Taxes
A charitable gift to the Cumberland County Historical Society qualifies for a
federal income tax deduction if you itemize on your tax return.
Capital Gains
A charitable gift to the Cumberland County Historical Society of appreciated
assets that have been held longer than a year may avoid capital gain tax.
This might impact the following assets that can be used to make a gift:
stocks and bonds, mutual funds, tangible property, or real estate.
Federal Gift and Estate Tax
A planned gift to the Cumberland County Historical Society may qualify for a
charitable deduction from both federal gift and estate taxes.
Appraisal FAQ
I am interested in a tax deduction for the object(s) I am donating to
the Cumberland County Historical Society? How do I do that?
The IRS has established guidelines for tax deductions of donated materials.
In general, for an object or personal property valued at $500 dollars or less,
you may be able to use a common antiques guide to establish a value. For
deductions over $500 and up to $5,000, the IRS require Form 8283 to be
filed, indicating how the fair market value of the object was determined.
The use of a professional appraiser is not required, although it may be
advisable if the object is unique and auction prices, antique guides,
collecting books and other sources of value are unavailable for the object.
For object(s) worth $5,000 or more, the IRS requires Form 8283 be filed and
that a statement from a qualified appraiser support Form 8283.
What is “fair market value”?
Fair market value is defined by the IRS as “the price at which the property
would change hands between a willing buyer and a willing seller, neither
being under any compulsion to buy or sell, and both having reasonable
knowledge of relevant facts”.
What does the IRS mean by a certified appraiser?
Under IRS rules, qualified appraisers are those who declare that:
They regularly perform appraisals and present themselves as appraisers.
They are qualified to make appraisals of the type of property being valued.
They understand that there is personal liability for intentionally false
overstatements of value.
They are not “excluded individuals”.
What is an excluded individual?
An excluded individual is usually someone who is considered an interested,
and therefore not objective, party in the donation. This includes the donor
or taxpayer claiming a deduction, Cumberland County Historical Society,
persons who previously owned the property or acted as an agent in the
buying or selling of it, and any person who is married to, related to or
employed by any of the above persons.
How do I find an appraiser?
It is in the best interest to your ability to make a tax deduction the IRS
considers valid to have the appraisal done before the object is donated to
the Cumberland County Historical Society. For the appraisal to then be valid
for a deduction, it must be formally accepted by CCHS within 60 days after
the appraisal date.
At this time, CCHS should be provided with a copy of the written appraisal,
as well as a copy of your Form 8283
In selecting an appraiser, you may wish to contact national, state or local
societies or associations of appraisers for a list of those in your area and
their professional qualifications.
Why can’t Cumberland County Historical Society provide a monetary
value for me to use?
The Tax Reform Act of 1984 bars museums, historical societies, libraries and
other donee institutions from providing appraisals for a donor’s tax-
deductible object(s). The IRS considers CCHS to be an interested party, or
an “excluded individual” and will not accept a deduction based on our
valuation. It is also considered unethical within the field to place monetary
values on objects, as we should accept them for their historical value, not
their monetary one. If you have any other tax-related questions regarding
your donation, you may wish to consult with your accountant.