IRS Form 8283

[Kali the Boston Terrier]

So I have a client that is submitting my report of a conservation easement, we are filling out Form 8283 (which I have done many times). I look where the accountant has filled in some of the areas, line 5(c) has the donation amount not the fair market value of the property. When I questioned the accountant she said "...that is how the IRS wants to see it".

I have refused to sign it because I believe that the IRS has said Fair Market Value of property for a reason, and that every other 8283 I have done had the FMV of the property. So if the donation amount and the FMV are different, should the donation amount go in line 5(c)?

Am I correct to dig my heels in here?

 

[MBD]

Line 5 is the FMV of the conservation easement. It is irrelevant whether the actual "donation" is greater, equal or less than the FMV.

 

[PropertyEconomics]

Brian .. you have to sign the report under penalty of purjury if I remember right that the FMV is that which is on line 5c. Digging your heals in is the absolute right thing to do. Show then on the forum where you are signing under penalty of purjury. And dont sign the form until you have the right amount in it and a copy of it in your file.

 

[Kali the Boston Terrier]

Line 5 is the FMV of the conservation easement. It is irrelevant whether the actual "donation" is greater, equal or less than the FMV.

According to the IRS the easement does not have a FMV, and in all their regs specifically say that.

An update of sorts, I got an IRS friend of mine to answer how it specifically should read, he confirmed that I was right. So as a means to resolve the issue, we filled out the 8283 an attached an addendum detailing exactly the way it reads in the report "FMV before encumberance", "donation amount of easement", "FMV after encumberance". I am told that this is an acceptable method, but at the very least I have not been misleading.