Drake Tax - 8283: Frequently Asked Questions

This non-cash contribution entered on screen 8283 also may have been entered on screen

• A

• K1P, line 13

• K1S line 12

Do not enter a non-cash charitable contribution on one of these screens in addition to the 8283 screen.

If the taxpayer is required to file Form 8283, remove non-cash charitable contribution entries from the A, K1P, and K1S screens and enter the information directly on the 8283 screen.

For more information about entering non-cash charitable contributions from a partnership or S corporation, see Screen Help on screen 8283 (press Ctrl+ALT+?, or right-click the screen outside of a field and select Screen Help from the drop list).

When the standard deduction favors the taxpayer, neither the Schedule A nor Form 8283 are necessary and neither are transmitted when you e-file the return. If the Schedule A is unnecessary, you can suppress the form with the option Print Schedule A only when required at Setup > Options > Form & Schedule Options.

Currently, the software is not designed to suppress Form 8283 when it is not necessary.

EF Message 6068 generates if an invalid VIN has been entered on screen 8283, 936A, or 8910.

The Instructions for Form 8283 provide the following tips:

"You can find the VIN on the vehicle registration, the title, the proof of insurance, or the vehicle itself. Generally, the VIN is 17 characters made up of numbers and letters.

If the VIN has fewer than 17 characters, enter a zero in each of the remaining entry spaces to the left of the VIN. For example, if the VIN is '555555X555555,' enter '0000555555X555555.'"

In the VIN or ID number (if vehicle) field on screen 8283, if you enter a VIN number that is less than 17 characters, or otherwise invalid, a pop-up message prevents exiting the field and warns you that the entry is not valid.

To clear this red message, verify the following:

• Check the VIN data entry carefully. The character in the 9th position of a 17-character VIN is a "check digit." If you've entered the letter O, replace it with a zero (0).

• Generally, the letters I, O and Q are not valid entries in a VIN.

• If you have a VIN less than 17 characters, precede the number with enough zeroes to make it 17 characters.

• You cannot e-file with an invalid VIN entered.

View the return. You may see message 6028, relating to the donation of a vehicle. If I - VEHICLES is selected from the Property type drop list on screen 8283, the box in column (b) of Part I is checked on Form 8283 and you must attach a binary statement. Follow the instructions stated in the 6028 message text.

Check the Bargain sale price field and the Fair market value field. If the bargain sale price is greater than the fair market value, there is no deduction. The fair market value must exceed the bargain sale price for a deduction to exist.

You can review the result of a bargain sale on the Form 8283 Sale worksheet. The Instructions for Form 8283 explain “A bargain sale is a transfer of property that is in part a sale or exchange and in part a contribution.” The result is a fair market value contribution, and an adjusted basis contribution.

You have checked the box Donated property is publicly traded security on screen 8283. The Instructions for Form 8283 tell you that for a donation of publicly traded securities, column (g), Donor’s cost or adjusted basis, should be left blank:

"Column (g). Do not complete this column for property held at least 12 months or publicly traded securities. Keep records on cost or other basis."

Use the drop list Contribution category under RESTRICTIONS in the lower-right corner of the 8283 screen.

The system assumes that the contribution was made to a 50% limit organization. If the Fair Market Value entered is greater than the adjusted basis, the system assumes that you want to deduct the Fair Market Value and uses the special 30% limit. If neither of the above conditions applies, use this field to indicate which deductible category this contribution fits into:

1 - 50% Contribution subject to 50% limit

2 - 30% Contribution subject to 30% limit

3 - 50% Contribution subject to 30% limit - appreciated cap gain

4 - 30% Contribution subject to 20% limit - appreciated cap gain

If type 1 or 2 is chosen, the system will reduce the Fair Market Value to the adjusted basis.

In order to clear EF Message 5566, you will have to enter something other than VARIOUS in the Date contributed field on screen 8283.