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What may artist deduct for gift of other’s work?

Your Legal Questions Answered

What may artist deduct for gift of other’s work?

In an earlier question, you said that an artist who donates his or her own work to a charity may not deduct the fair market value of the painting, but only the actual cost of items used in producing it, such as the paint, the canvas and the frame. Is an artist entitled to take a fair market value contribution deduction for a gift of someone else's art?

An artist who gives someone else’s original work is like any other donor of art who doesn’t produce the work.  If the art will be used by the recipient charity in its charitable program and if the property has been held for more than a year, the donor can claim a deduction at current fair market value if it has appreciated from the time originally acquired.  If it is not going to be used in the charity’s program or hasn’t been held by the donor for a year, the deduction is only for the lower of cost or fair market value. (The earlier question can be found here.)

Tuesday, August 11, 2015

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