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5 Years Ago
#6 will surprise many of you!
https://www.bnymellonwealth.com/articles/strategy/how-to-make-tax-deductible,-charitable-donations-of-artwork.jsp?utm_source=linkedin&utm_medium=social&utm_campaign=Event%20-%20Christies%20Rockefeller&utm_content=Tax%20Deductible%20Art
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5 Years Ago
Nope, #6 did not surprise me. This is why there are huge art vaults, art investors put their acquisitions in them for safe keeping and to comply with IRS regulations. They don't hang their investments on their walls.
5 Years Ago
You must truly be an art collector or investor
In addition to meeting all these criteria, you must also fit the classification of an art collector or investor as defined by the IRS in order to to claim a tax deduction. If you're an art dealer or an artist, you are not entitled to take deductions on charitable donations of artwork.
With that you have to think hummm? Who wrote the law?
Dave
5 Years Ago
DB, I believe the intent is the same as anything else, they just want to make sure it's a business or purely for investment and not just a hobby that you are trying to use to get a tax break. I have a small collection of art but it's definitely not a business.
5 Years Ago
I don't know, maybe dealers have used charity donations to offload merchandise that just won't sell. Just speculating.
5 Years Ago
I'd agree DavidK.
The important thing here is that this does not apply to artists making donations...you can only write off the cost of the materials...not your perceived value of the art.
5 Years Ago
So if a great artist in NYC dies. Well know, big reputation etc.......tens of millions of dollars of art left in their estate....it is a no go?
I love how law is written.
Dave
5 Years Ago
ha! so audit me, what do I care? I donate to local charities all the time and they give me a receipt at the end of the year with a stated value (usually what they sold it for and usually through fund-raising auctions).
I don't actually itemize any more because I don't have enough to claim with no mortgage. But if I did, I would still claim the full value stated on the receipts.
Methinks this is a much bigger issue for the wealthy, not for peons like me. :D
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