§6050L Returns relating to certain donated property

Summary

If a charity sells, trades, or otherwise gets rid of a donated item within 3 years after it got the gift, the charity must file a report with the IRS. The report must give the donor’s name, address, and tax ID; describe the item; say when it was given; say how much money the charity got when it was sold and the sale date; describe how the charity used the item; and say whether that use was tied to why the charity is tax-exempt. The charity must also give a copy of that report to the donor in the time and way the IRS requires. If a charity gets a qualified intellectual property gift, it must file yearly reports for any tax year that falls in the 10-year period after the gift. Each report must show the donor’s name, address, and tax ID; describe the intellectual property; give the date it was given; and show the net income for that year that is tied to the intellectual property as measured under the tax rules in section 170(m) (with that section’s specified adjustments). Definitions: “charitable deduction property” = a donated item (not publicly traded stock) claimed as a deduction when the item’s claimed value, plus similar items the donor gave to one or more charities, exceeds $5,000; “publicly traded securities” = securities with readily available market quotes; “specified taxable year” = any year that is part of the 10-year period after the intellectual property gift.