§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 getting it, the charity must file a report with the IRS on the forms the IRS requires. The report must give the donor’s name, address, and TIN; describe the donated item; give the donation date and the sale (or disposal) date; show how much was received when it was sold; describe how the charity used the item; and say whether that use was related to the charity’s tax-exempt purpose under section 501. "Charitable deduction property" means donated items (not publicly traded stocks) for which a tax deduction was claimed and whose claimed value, when added to similar items the donor gave to any donee, is more than $5,000. "Publicly traded securities" are securities that had readily available market quotes on an established market when given. If a donee gets a qualified intellectual property gift, the donee must file a report for each taxable year that falls in the 10-year period starting on the gift date. That report must show the donor’s name, address, and TIN; describe the intellectual property; give the gift date; and show the net income for the year that is properly allocable to that property, determined without regard to paragraph (10)(B) of section 170(m) and with the modifications in paragraphs (5) and (6) of that section. Terms used here that also appear in section 170(m) have the same meanings as in that section. The charity must also give a copy of any report to the donor at the time and in the manner the IRS requires.