We donated furniture, clothing, and household items to charities all year — no single dropoff was worth $5,000, so why is Virginia denying our itemized deductions for lack of an appraisal?

Plain-English summary

A married couple claimed noncash charitable contribution deductions on their Virginia resident returns for 2020, 2021, and 2022 — donations of clothing, furniture, household items, tools and equipment, and miscellaneous items, made in numerous trips on different days to different charities. Under audit, the Department asked for supporting documentation, spelled out exactly what was needed, found what came back insufficient, and assessed. The couple appealed, insisting their documentation was adequate. The Department upheld the assessments.

Why Virginia applies the federal rules. Virginia conformity (Va. Code § 58.1-301) starts Virginia taxable income from federal AGI, and Va. Code § 58.1-322.03 1 allows itemized deductions only as "claimed in accordance with the IRC and its related regulations." The Department normally trusts the federal return, but it can adjust where amounts are inconsistent with the IRC (Va. Code § 58.1-219) and can demand the federal return with all supporting statements and schedules (§ 58.1-310).

The tiered substantiation rules for noncash gifts (Treas. Reg. § 1.170A-13):

• $500 and under — a donee receipt: donee's name and address, date and place, and a reasonably detailed description of the property.
• Over $500 up to $5,000 — the receipt plus a written record of the manner and approximate date of acquisition and the cost basis, plus Form 8283 attached to the federal return.
• Over $5,000 — all of the above plus a qualified appraisal with an appraisal summary attached.
• Any single contribution of $250 or more also needs a contemporaneous written acknowledgment from the charity stating whether goods or services were provided in return, and their value (Treas. Reg. § 1.170A-13(f)(2)).
• Receipts or cancelled checks are the baseline for any charitable deduction (P.D. 14-155, P.D. 19-78).

The aggregation rule is what caught these taxpayers. For the tier thresholds, all similar items donated during the year — to one or multiple donees — count as one property (IRC § 170(f)(11)(F); Kunkel v. Comm'r, T.C. Memo 2015-71; Bass v. Comm'r, T.C. Memo 2023-41). "Similar items" means the same generic category — clothing, jewelry, furniture, electronic equipment, household appliances, kitchenware (Treas. Reg. § 1.170A-13(c)(7)(iii)). The ruling's own example: three separate $2,000 furniture donations in one year = a $6,000 furniture donation governed by the appraisal tier.

Applied here: no single donation event topped $5,000, so the couple believed appraisals were never required. But after aggregation, each year's categories exceeded $5,000 — except possibly clothing (2020–21) and tools and equipment (2021–22), where the tier was unclear yet likely also over $5,000, because some receipts just listed lump-sum values and generic categories. The couple did complete Forms 8283, but provided no underlying evidence of the values reported — and "mere statements on a Form 8283 without underlying documentation in support are insufficient" (P.D. 24-68).

Result: taxpayers must keep records sufficient to establish their liability (Treas. Reg. § 1.6001-1(a)), Department assessments are prima facie correct (Va. Code § 58.1-205), and the couple didn't carry their burden. Assessments upheld; updated bills with accrued interest follow, payable within 30 days to avoid more interest and possible collection action.

What this means for you

Anyone making regular noncash donations (clothing drives, decluttering, estate cleanouts)

Track donations by category across the whole year, not by trip. Twenty $300 bags of clothing = a $6,000 clothing donation for substantiation purposes, which means the qualified appraisal tier — something almost nobody obtains for used clothing after the fact. If a category might cross $5,000, plan for the appraisal before donating, or keep the year's total in that category below the threshold.

Paper matters at every tier

Even below $5,000 you need more than a thank-you note: the donee receipt with a reasonably detailed description, and above $500, your acquisition history and cost basis in writing plus Form 8283. Blank-ish receipts listing "household goods — $2,500" invite exactly the treatment this couple got: the Department can't tell which tier applies and assumes the worst supported by the evidence.

Form 8283 is a reporting form, not proof

Filing it is mandatory over $500, but the numbers on it substantiate nothing by themselves. Keep the underlying evidence — itemized lists, photos, valuation worksheets, receipts — or the deduction fails even with a perfectly completed form.

Common questions

Q: No single dropoff was worth $5,000. Why did the appraisal requirement apply?
A: Because IRC § 170(f)(11)(F) aggregates all similar items donated during the year, across all charities. The thresholds test the year's category total, not each donation event.

Q: What counts as "similar items"?
A: Property of the same generic category or type — the regulation lists clothing, jewelry, furniture, electronic equipment, household appliances, and kitchenware as examples (Treas. Reg. § 1.170A-13(c)(7)(iii)).

Q: We filed Form 8283 every year. Doesn't that substantiate the deduction?
A: No. The Department — citing P.D. 24-68 — held that statements on a Form 8283 without underlying documentation are insufficient. The form reports the donation; receipts, acquisition records, cost basis, and (over $5,000) a qualified appraisal prove it.

Q: What happens next for these taxpayers?
A: The assessments stand. They'll receive updated bills including interest to date, and must pay within 30 days of the bill dates to avoid additional interest and possible collection actions.

Citations and references

Statutes and regulations:

• Va. Code § 58.1-1821 — administrative appeal (application for correction) to the Tax Commissioner
• Va. Code § 58.1-301 — conformity to the Internal Revenue Code
• Va. Code § 58.1-322.03 1 — Virginia itemized deductions follow federal amounts claimed per the IRC
• Va. Code § 58.1-219 — authority to adjust amounts inconsistent with the IRC
• Va. Code § 58.1-310 — Department may require the federal return and supporting schedules
• Va. Code § 58.1-205 — assessments prima facie correct; burden on the taxpayer
• IRC § 170(f)(11)(F) — year-long aggregation of similar items for substantiation thresholds
• Treas. Reg. § 1.170A-13 — tiered substantiation (receipt / acquisition-and-basis records + Form 8283 / qualified appraisal); § 1.170A-13(f)(2) — contemporaneous written acknowledgment for $250+ gifts; § 1.170A-13(c)(7)(iii) — "similar items of property" defined
• Treas. Reg. § 1.6001-1(a) — record-keeping requirement

Authorities the Department relied on (described here, not linked): P.D. 14-155 (8/28/2014) and P.D. 19-78 (7/29/2019) (charitable deductions require substantiation such as receipts or cancelled checks); Kunkel v. Comm'r, T.C. Memo 2015-71, and Bass v. Comm'r, T.C. Memo 2023-41 (aggregation of similar items); P.D. 24-68 (7/9/2024) (Form 8283 statements alone are insufficient).

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 25-36

Original ruling text

March 14, 2025

Re: § 58.1-1821 Application: Individual Income Tax

Dear *:

This will respond to your letter in which you seek correction of the individual income tax assessments issued to * (the “Taxpayers”) for the taxable years ended December 31, 2020, 2021, and 2022.

FACTS

The Taxpayers filed Virginia resident income tax returns for the taxable years at issue, claiming noncash charitable contributions as itemized deductions reportable on federal Schedule A. Under audit, the Department requested documentation to support the deductions. The Taxpayers submitted some documentation, but the auditor determined it was insufficient to support the claimed deductions and issued assessments. The Taxpayers submitted an application for correction, asserting that they provided sufficient documentation.

DETERMINATION

Conformity

Virginia Code § 58.1-301 provides, with certain exceptions, that terminology and references used in Title 58.1 of the Code of Virginia will have the same meaning as provided in the Internal Revenue Code (IRC) unless a different meaning is clearly required. Conformity does not extend to terms, concepts, or principles not specifically provided in the Code of Virginia . For individual income tax purposes, Virginia conforms to federal law, in that it starts the computation of Virginia taxable income with federal adjusted gross income (FAGI). Income properly included in the FAGI of a Virginia resident is subject to taxation by Virginia, unless it is specifically exempt as a Virginia modification pursuant to Chapter 3 of Title 58.1 of the Code of Virginia .

As a general rule, the Department relies on the accuracy of information and computations reflected on the federal income tax return when reviewing Virginia individual income tax returns. If the information provided on the federal return looks reasonable, there is generally no reason to look behind those computations. The Department, however, retains the authority to adjust the FAGI and itemized deductions where there is clear evidence that the amounts reported on the federal or Virginia income tax return are not consistent with the IRC. See Virginia Code § 58.1-219.

Itemized Deductions

Virginia Code § 58.1-322.03 1 allows taxpayers to deduct from their Virginia adjusted gross income certain amounts allowed for itemized deductions for federal income tax purposes. These deductions include those for real estate taxes, home mortgage interest, personal property taxes, medical expenses, and charitable contributions, provided they are claimed in accordance with the IRC and its related regulations.

The Department requested that the Taxpayers provide documentation supporting the noncash charitable contribution deductions claimed on their Schedules A for the 2020 through 2022 taxable years. The request clearly indicated the documentation required to substantiate the deductions. Deductions for charitable contributions are allowable only when they can be substantiated through items such as receipts or cancelled checks. See Public Document (P.D.) 14-155 (8/28/2014) and P.D. 19-78 (7/29/2019). In addition, any contribution of $250 or more must also have a contemporaneous written acknowledgment from the donee indicating whether any goods or services were provided by the donee in connection with the contribution, and if so, what the value of those goods or services were. See Treas. Reg. § 1.170A-13(f)(2).

Under IRS regulations, the substantiation requirements for gifts of property other than money vary depending on the amount of the deduction claimed. The regulations set up three tiers of deductions, for amounts up to and including $500, greater than $500 but less than $5,000, and greater than $5,000, and require greater substantiation for each tier. See Treas. Reg. § 1.170A-13. For purposes of determining the applicable threshold values, property and all similar items of property donated to one or more donees during the year are treated as one property. See IRC § 170(f)(11)(F). See also Kunkel v. Comm’r, T.C. Memo 2015-71, and Bass v. Comm’r , T.C. Memo 2023-41.

“Similar items of property” is defined as “property of the same generic category or type, such as clothing, jewelry, furniture, electronic equipment, household appliances, or kitchenware.” See Treas. Reg. § 1.170A-13(c)(7)(iii). For example, if a taxpayer made three separate donations of furniture valued at $2,000 each, the rules applicable to donations greater than $5,000 would apply because the total value of furniture donated during the year exceeded $5,000.

Gifts of Property Valued at $500 and Under

Under Treas. Reg. § 1.170A-13(b)(1), for items valued below $500, a taxpayer generally need only have a receipt from the donee containing the name and address of the donee, the date and place of the contribution, and a reasonably detailed description of the property donated.

Gifts of Property Valued Over $500

Treas. Reg. § 1.170A-13(b)(3) provides that in addition to the receipt required by Treas. Reg. § 1.170A-13(b)(1), the donation of noncash property with a value between $500 and $5,000 necessitates a written record of the manner and approximate date of acquisition and the cost basis. In addition, taxpayers must complete and attach one or more federal Forms 8283, Noncash Charitable Contributions, to their federal income tax return for each taxable year in which they make a noncash charitable contribution in excess of $500.

Gifts of Property Valued Over $5,000

Under Treas. Reg. § 1.170A-13(c)(2), if a taxpayer claims a deduction for property valued in excess of $5,000, the taxpayer generally must also obtain a qualified appraisal and attach an appraisal summary to their return.

In each of the 2020, 2021, and 2022 taxable years, the Taxpayers claimed deductions for donations of clothing, furniture, household items, tools and equipment, and other miscellaneous items. The Taxpayers made numerous donations on different days to different charitable organizations during each of the years at issue. The valuation assigned to each separate donation event did not exceed $5,000. The Taxpayers believed that appraisals were not required because no separate donation event exceeded the $5,000 threshold. As discussed above however, the threshold is applied to the total value of items or similar items donated during the year, not at any one time during such year.

With the exception of the clothing donated in 2020 and 2021 and the tools and equipment donated in 2021 and 2022, the donations each year exceeded the $5,000 threshold after applying the aggregation rule of IRC § 170(f)(11)(F). While it is unclear which threshold applied to the clothing and the tools and equipment in the years indicated, it is likely that these categories also exceeded the $5,000 threshold because some of the receipts simply listed a lump sum value and generic categories to which the donated items belonged. In addition, while the Taxpayers completed federal Forms 8283, they have not provided any underlying evidence establishing the value of the donations reported on the forms. Mere statements on a Form 8283 without underlying documentation in support are insufficient to substantiate the deductions. See P.D. 24-68 (7/9/2024).

CONCLUSION

Taxpayers must maintain records sufficient to allow the IRS to determine their correct tax liability. See Treas. Reg. § 1.6001-1(a). Similarly, Virginia Code § 58.1-310 provides:

Whenever in the opinion of the Department it is necessary to examine the federal income returns or any copy thereof of any individual, estate, trust, partnership or corporation in order properly to audit such returns, the Department or the commissioner of the revenue shall have the right to require such taxpayer to provide such return or a copy thereof and all statements, inventories, and schedules in support thereof.

Under the provisions of Virginia Code § 58.1-205, in any proceeding relating to the interpretation of the tax laws of Virginia, an “assessment of a tax by the Department shall be deemed prima facie correct.” As such, the burden of proof is on the Taxpayers to show that the assessment was erroneous. In this case, the Taxpayers did not provide sufficient documentation to support the deductions claimed for noncash charitable contributions. Accordingly, the Department’s assessments are upheld. The Taxpayers will receive updated bills that will include accrued interest to date. The Taxpayers should remit the balances due within 30 days of the bill dates to avoid the accrual of additional interest and possible collection actions.

The Code of Virginia sections cited are available online at law.lis.virginia.gov. The public documents cited are available at tax.virginia.gov in the Laws, Rules, & Decisions section of the Department’s website. If you have any questions regarding this determination, you may contact * in the Office of Tax Policy and Legal Affairs, Tax Adjudication and Resolution Division, at or **.

Sincerely,

James J. Alex

Tax Commissioner

Commonwealth of Virginia

AR/4912.X

Related Documents

14-155

19-78

24-68