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Title 26, Internal Revenue CodeRelease 119-110

§6050L Returns Relating to Certain Donated Property

Title 26 › Subtitle F — Procedure and Administration › CHAPTER 61 — INFORMATION AND RETURNS › Subchapter A — Returns and Records › PART III — INFORMATION RETURNS › Subpart B — Information Concerning Transactions With Other Persons › § 6050L

Last updated Sep 22, 2026|Official source

Summary

If a charity sells, trades, or otherwise gets rid of a donated item within 3 years after getting it, the charity must file a report with the IRS. The report must show the donor’s name, address, and tax ID number; a description of the item; the date it was given; how much was received when it was sold or disposed of and the date of that sale; how the charity used the item; and whether that use was related to the charity’s exempt purpose. If the charity says the use was related and a special certification applies, the charity must include that certification. The rule applies to donated items (not publicly traded stock) when the donor claimed more than $5,000 in total value for similar gifts. For certain donated intellectual property, the charity must file a yearly report for any year in the 10 years after the gift showing donor info, a description, the date, and the amount of the charity’s net income tied to that property. The charity must give a copy of any report to the donor as the IRS requires.

Full Legal Text

Title 26, §6050L

Internal Revenue Code, Source: USLM XML via OLRC

(a)Dispositions of donated property
(1)In general
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—
(A)the name, address, and TIN of the donor,
(B)a description of the property,
(C)the date of the contribution,
(D)the amount received on the disposition,
(E)the date of such disposition,
(F)a description of the donee’s use of the property, and
(G)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).
(2)Definitions
For purposes of this subsection: (A) Charitable deduction property
(B)Publicly traded securities
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.
(b)Qualified intellectual property contributions
(1)In general
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—
(A)the name, address, and TIN of the donor,
(B)a description of the qualified intellectual property contributed,
(C)the date of the contribution, and
(D)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).
(2)Definitions
For purposes of this subsection: (A) In general
(B)Specified taxable year
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.
(c)Statement to be furnished to donors
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.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2006—Subsec. (a)(1). Pub. L. 109–280, which directed the amendment of section 6050L by adding subpars. (F) and (G) and concluding provisions and substituting “3 years” for “2 years” in introductory provisions without specifying the act to be amended, was executed to this section, which is section 6050L of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. 2004—Pub. L. 108–357 amended section catchline and text generally, substituting provisions consisting of subsecs. (a) to (c) for provisions which, in subsec. (a) required return to be made by donee and set forth contents requirements, in subsec. (b) defined “charitable deduction property” for purposes of this section, in subsec. (c) required copy of return to be furnished to donor by donee, and in subsec. (d) defined “publicly traded securities”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2006 Amendment Pub. L. 109–280, title XII, § 1215(d)(2), Aug. 17, 2006, 120 Stat. 1079, provided that: “The

Amendments

made by subsection (b) [amending this section] shall apply to returns filed after September 1, 2006.”

Effective Date

of 2004 AmendmentAmendment by Pub. L. 108–357 applicable to contributions made after June 3, 2004, see section 882(f) of Pub. L. 108–357, set out as a note under section 170 of this title.

Effective Date

Pub. L. 98–369, div. A, title I, § 155(d)(1), July 18, 1984, 98 Stat. 695, provided that: “The

Amendments

made by subsections (a) and (b) [enacting this section, amending section 6652 and 6678 of this title, and enacting provisions set out as a note under section 170 of this title] shall apply to contributions made after December 31, 1984, in taxable years ending after such date.”

Reference

Citations & Metadata

Citation

26 U.S.C. § 6050L

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110