The varied reasons to donate art include a personal affinity for a museum, 创造遗产的愿望, and the tax consideration that may come with the donation.
The tax rules surrounding the tax deduction of art are complex and confusing.¹
当捐赠艺术, donors can generally claim a federal tax deduction of up to 30% of their adjusted gross income each year. If the value of the donation exceeds this 30% limit, the excess can be deducted in subsequent years—up to five years—subject to the 30% limit in each year.²
The deduction may be based on the appraised value of the donated artwork if the recipient qualifies as a public tax-exempt organization, which is generally defined as an institution that receives at least a third of its financial support from the public. Museums, schools, hospitals, and churches are examples of a public tax-exempt organization.
If you are donating art to a private tax-exempt organization, e.g., a private foundation, your deduction will be based on the price you paid for the donated art.
Even if you are donating art to a public tax-exempt organization, a deduction based on the appraised value requires that the donation be related to the recipient’s mission—a requirement not likely met by organizations other than museums. A failure to meet that test results in a deduction based on the purchase price.
Even if your donation passes the test, potential land mines remain.
If the recipient sells the donated art within three years, the allowable deduction will revert to the purchase price instead of the appraised value, leaving you with a potential exposure to back taxes. Since you are able to negotiate the terms of your gift, you may want to secure a promise not to sell the art within three years of its donation.
The Internal Revenue Service may choose to challenge your appraisal with its own to ensure against inflated appraisals. 处罚可能很严厉, so you should make sure your appraiser has facts, 如可比销售额, 来支持他或她的评估.
- The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.
- This is a hypothetical example used for illustrative purposes only. It is not representative of any specific art donation.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. 所表达的意见及 material provided are for general information, and should not be considered a solicitation for the purchase or 出售任何证券. 版权所有2021 FMG套件.