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Form 8899

(Rev. December 2021)

Notice of Income from Donated Intellectual Property

OMB Number 1545-0047

Catalog Number 37707M

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Instructions for Form 8899

Section references are to the Internal Revenue Code unless otherwise noted.

A taxpayer who contributes qualified intellectual property (defined on page 2) to a charity may be entitled to a charitable deduction, in addition to any initial deduction allowed in the year of contribution, based on a specified percentage of the qualified donee income (defined on page 2) received by the donee with respect to the qualified intellectual property. Any additional charitable deductions attributable to qualified donee income may be allowed in the year of the contribution or in subsequent years, subject to the limitations described in the definition of qualified donee income.

    To qualify for the additional charitable deduction, the donor must provide notice to the donee at the time of the contribution that the donor intends to treat the contribution as a qualified intellectual property contribution for purposes of sections 170(m) and 6050L.

    Form 8899 is used by a donee to report net income from qualified intellectual property to the donor of the property and to the IRS. This form must be filed for each tax year of the donee in which the donated property produces net income, but only if all or part of that tax year occurs during the 10-year period beginning on the date of the contribution and that tax year does not begin after the expiration of the legal life of the donated property.

Note: Donors should see Pub. 526 , Charitable Contributions, to figure the amount of the additional charitable deduction.

If you donate intellectual property to a qualified organization, your deduction is limited to the ba-sis of the property or the FMV of the property, whichever is smaller. Intellectual property means any of the following.

  • Patents.
  • Copyrights (other than a copyright descri-bed in Internal Revenue Code sections 1221(a)(3) or 1231(b)(1)(C)).
  • Trademarks.
  • Trade names.
  • Trade secrets.
  • Know-how.
  • Software (other than software described in Internal Revenue Code section 197(e)(3)(A)(i)).
  • Other similar property or applications or registrations of such property.

Every donee organization described in section 170(c) (except a private foundation as defined in section 509(a) that is not described in section 170(b)(1)(F)) that received a charitable gift of qualified intellectual property for which the donor provided notice as discussed above, must file Form 8899 if the property produces net income for the year. If the qualified intellectual property fails to produce net income for the donee’s tax year, the donee is not required to file Form 8899.

The donee is required to file Form 8899 with the IRS and provide a copy of the form to the donor by the last day of the first full month following the close of the donee’s tax year.

File Form 8899 at the address indicated below.

  

Department of the Treasury

Internal Revenue Service

Ogden, UT 84201-0027

The organization may be subject to a penalty if it fails to file Form 8899 by the due date; fails to include all of the information required to be shown on this form; or fails to include correct information on this form. For additional information, see sections 6721 through 6724.

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All fields marked with an asterisk (*) are required.

 

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Identifying number is either a Social Security Number (SSN) or Employer Identification Number (EIN)

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Only provide digits, do not enter dashes or any other characters. All zeros not accepted.

Only provide digits, do not enter dashes or any other characters. All zeros not accepted.

Instructions for Form 8899

Qualified intellectual property is generally any patent, copyright, trademark, trade name, trade secret, know-how, software or similar property, or applications or registrations of such property (other than property contributed to or for the use of a private foundation as defined in section 509(a) that is not described in section 170(b)(1)(F)). See Exceptions below.

    Exceptions. The following property is not considered qualified intellectual property for purposes of the additional charitable deduction.

1. Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified.

2. A copyright held by a taxpayer:

a. Whose personal efforts created the property, or

b. In whose hands the basis of the property is determined, for purposes of determining gain from a sale or exchange, in whole or in part by reference to the basis of the property in the hands of a taxpayer whose personal efforts created the property.

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Date field format MM/DD/YYYY, use space bar to toggle the date picker.

Date field format MM/DD/YYYY, use space bar to toggle the date picker.

All fields marked with an asterisk (*) are required.

 

Qualified donee income. Qualified donee income is any net income received or accrued by the donee that is properly allocable to the qualified intellectual property for the tax year of the donee which ends within or with the tax year of the donor. Income is not treated as allocated to qualified intellectual property if it is received or accrued after the earlier of the expiration of the legal life of the qualified intellectual property, or the 10-year period beginning with the date of the contribution.

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