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Art donations fully tax deductible?


#1

I’m glad they are doing this, but when I read the full text of the
bill I realized that this will do nothing for the artist like me who
is constantly asked to donate pieces to non-profit groups to be
auctioned or raffled etc. I did write to my congressperson and
senators and tell them I thought this could be made even more fair if
there was something in it for the working artist who might not be on
the “wanted by museums” level.

Karen


#2

Hi Gang,

I have to agree, it’s a tax ripoff in the US when an artists is
asked to donate something they made to an organizations fund rasing
endeavors.

I haven’t checked what I’m about to suggest with a tax consultant,
so I can vouch for it’s legality, but might this method work.

Sell the item to the organization. Have the item and a receipt in
hand. Also have in hand your check for the amount of the receipt. The
organization can either write you a new check for the item or endorse
your check & give it back to you. This way the organization get’s
their donation & you get full credt for your contribution.

Dave


#3

Dave,

I think there are two problems with your suggestion. First, I think
you would have to declare the sale of the item to the organization
as income. Secondly, I think the IRS would take the position that
the transaction was simply a scheme to evade taxes.

Tim


#4

I’m going to stick my two cents in on this again. Is there any
reason why we need to make “full” donations?

Usually, when I am asked to donate work to a benefit auction or
sale, I politely say that I need to make x amount to cover my
expenses. This amount may change, depending on how much I want to
support the organization. I may even be willing to take a full loss,
in which case I’m not concerned about the tax deduction.

Some auction situations allow you to set a minimum bid (if the bid
isn’t matched, the piece is returned to you, but you still get the
exposure and people think you’re nice…). One way or another, you
can insist on a percentage of what they make on the piece. They still
make money on it, so they shouldn’t have any problem. And I don’t
have any problem, since I’ve already written off my expenses, so
anything above that is income–taxable, yes, but still income.

I know performing artists that do benefits, but they’re performing
at a cut rate (or for a smaller percentage of the door), not for
free…And if they do perform for free, it’s volunteer work, i.e.
they don’t expect to get a tax deduction for it.

Maybe I’m just being dense…

Lisa Orlando Aphrodite’s Ornaments (but not making jewelry, because
I’m taking a very time-consuming drawing
and design course…summer school! After decades of freedom!)