Tax Deduction for Fine Art Donations to Charity

It's December and you need to make charitable contributions before the end of the year to be able to deduct them against income on your 2007 tax return.

Don't forget that the 1995 Tax Act allows you to donate artwork to any IRS-approved charity at its fair market value, not at its cost basis.

In addition, this deduction falls outside of the alternative minimum tax clawback if you fall within the AMT.

Read our article on all the rules surrounding the deduction of charitable donations of art.

1 comment:

Olga O. Pina said...

It is important for donors of fine art collections to stipulate that their collection remain as part of the inventory of the recipient institution. Art collections that are rare and have a special significance, such as genuine Chicano Art Collections (from the 60s and 70s) not be sold in order to raise public funds for the instituion.

It seems highly unethical for institutions to receive donated fine art collections only to have the collections go on public sale to fund a financially troubled institution.

The public in general then loses the perspective that these collections carry and eventually the public loses an important part of history, social issues, let alone the aesthetic powerhouse of these politically potent images.

Olga Pina
Austin, Texas