What percentage of the value of an artwork can I claim as a tax deduction if I donate it to a U.S. Museum?

Answer 1

You can claim 100% of the value, but because it's a non-cash contribution you would need to have an appraisal of the painting if it's over a certain amount

Total deduction over $500. If your total deduction for all noncash contributions for the year is over $500, you must complete Section A of Form 8283, and attach it to your Form 1040. However, do not complete Section A for items you must report on Section B. See Deduction over $5,000 for one item, next, for the items you must report on Section B.

The Internal Revenue Service can disallow your deduction for noncash charitable contributions if it is more than $500 and you do not submit a required Form 8283 with your return.

Deduction over $5,000 for one item. You must complete Section B of Form 8283 for each item or group of items for which you claim a deduction of over $5,000. (However, if you contributed certain publicly traded securities, complete Section A instead.) In figuring whether your deduction is over $5,000, combine the claimed deductions for all similar items donated to any charitable organization during the year. The organization that received the property must complete and sign Part IV of Section B.

Deduction over $500,000. If you claim a deduction of more than $500,000 for a contribution of property, you must attach a qualified appraisal of the property to your return. This does not apply to contributions of cash, inventory, publicly traded stock, or intellectual property.

In figuring whether your deduction is over $500,000, combine the claimed deductions for all similar items donated to any charitable organization during the year.

If you do not attach the appraisal, you cannot deduct your contribution, unless your failure to attach it is due to reasonable cause and not to willful neglect.

Answer 2

Well, I read the other two answers so far...and neither of them are right.

The first one they will supply you with this information is false because they don't know your basis in the artwork.

The second one is wrong because most CPA's are not tax professionals...they are auditors. And, only one section of their test deals with taxes...when an Enrolled Agent takes a test that is just as intense but the entire test is on the subject of taxation. I had a great practice based upon fixing CPA's and lawyer's mistakes, until the business was sold.

Now, to answer your question. There isn't enough information in your question to answer it. A donation of art work and many other items that can appreciate are subject to very different rules. I don't know if this is the case or not...but, it is very possible. But, I can tell you that there is not a set percentage for art work donations.

Answer 3

The museum will provide you with tax documentation upon the donation. It depends on the value of your artwork - and on any benefits you receive from the museum in return for the donation.

Answer 4

Depending on the vaule you should see a CPA. There are a number of ways to donate property like art, and there can be a big difference in the tax effects. What is your basis? Based on your income and other deductions, it could trip AMT rules.

Answer 5

The museum will probably be able to quote you on this but, I would call several to make sure they know the correct answer.