DETERMINING THE VALUE OF DONATED FINE ART

We are often asked about donating works of art to Museums and other organizations and the tax implications for that donation.

The IRS has strict requirements for appraisals for Charitable Donation and has issued additional guidance for donations of art $20,000 and above - donations which generally are subject to review by the IRS's Art Advisory Board. This includes the requirement that a written appraisal be attached to the tax return and that 8"x10" color photographs of individual items appraised at $20,000 and above be included. Also required is the acquisition cost of the donated item as well as the source and date of acquisition.

Here are some guide lines for donations as well as links to other articles and appraisers who will help you navigate these often tricky tax deductions. Our advice, ALWAYS consult your tax advisor as donations and their tax implications will depend on your personal circumstances.

IRS Guidelines:
irs.gov/publications/p561/index.html
Download Guidelines (1MB)

Additional links*
thompsonandmartinez.com
ifaacertified.com
art-collecting.com/appraisals.htm
appraiseroffineart.com/Taxes.html
tjdfaas.com/#/advice-on-donating-works/4542740252
fineartregistry.com/articles/art-education/art-appreciation.php

* Art Cellar exchange does not recommend or endorse any of these professionals. Links are provided for information only.