Archived posting to the Leica Users Group, 2015/01/08
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]That's correct. Under ?170(e), IRC, the fair market value must be reduced by any ordinary income that would be recognized on a sale. In other words, for all practical purposes donations of self-created art are limited to cost of producing it. It gets worse. If the item is not self-created, and is not donated "for the use of" the charity, then the deduction is reduced by any gain that would be recognized. So if you donate the Picasso to a charity for the purpose of the charity selling it, your deduction is limited to your cost. And if the appraisal rules kick in, they apply to the total of similar items donated, not each individual item. It gets worse. Suppose you are a really gifted photographer and you create a photo worth, oh I don't know, say $6.5 million and hang on to it. You have probably created a death tax liability of 40% of that. Enough for one day. Ken On 1/8/2015 1:18 PM, Wilbur Norman wrote: > In regards to Tina's comment: > > I believe the deductions she is referring to are for items NOT CREATED BY > THE PERSON who is making the donation. So, if you donate a Picasso, you > get a Fair Market Value. For items created by the artist donating, its > another ball of wax. > > And, I believe the ceiling for NOT getting an appraisal is $5000 as > amended in the Pension Law some years ago (seems odd but thise folks in DC > add non-related items to laws all the time.) > > > Wilbur > > > > > ************* > > On Jan 8, 2015, at 12:02 PM, Susan Ryan wrote: > >> Can you take a tax deduction for a charitable donation? If so, how do you >> choose a dollar value of the photos donated? >> >> Thanks, >> Sue >> >> Sent from my iPhone >> >>> On Jan 8, 2015, at 11:50 AM, Tina Manley <tmanley at gmail.com> wrote: >>> >>> That's probably the best solution - donate to charity auctions. I've >>> done >>> that quite a bit and it's always appreciated. >>> >>> Tina >>> >>> On Thu, Jan 8, 2015 at 1:49 PM, Doug Herr <wildlightphoto at >>> earthlink.net> >>> wrote: >>> >>>> Donate to charity auctions? >>>> >>>> Doug Herr >>>> Orangevale, Sacramento County >>>> http://www.wildlightphoto.com >>>> http://doug-herr.fineartamerica.com >>>> >>>> >>>> -----Original Message----- >>>>> From: Robert Adler <rgacpa at gmail.com> >>>>> Sent: Jan 8, 2015 10:07 AM >>>>> To: Leica Users Group <lug at leica-users.org> >>>>> Subject: [Leica] OT: What would you do? >>>>> >>>>> I have a dilema. I'm moving back into my old home and clearing out 25+ >>>>> years of "stuff", Clean sweep. >>>>> >>>>> I know some of you have been through this recently (George/Tina/etc.). >>>>> I >>>>> have a ton of framed prints that haven't sold at galleries/coffee >>>>> shops, >>>>> but that doesn't mean they aren't lovely (IMO). >>>>> >>>>> They are custom framed and mounted. Archival. The works. I don't want >>>>> to >>>>> give them away (I think that devalues all art), and I don't want to >>>>> pack >>>>> and ship them to folks. >>>>> >>>>> Please PLEASE suggestions? The dump just seems wrong.. >>>>> Thanks! >>>>> -- >>>>> Bob Adler >>>>> www.robertadlerphotography.com >>>>> >>>>> _______________________________________________ >>>>> Leica Users Group. >>>>> See http://leica-users.org/mailman/listinfo/lug for more information >>>> >>>> _______________________________________________ >>>> Leica Users Group. >>>> See http://leica-users.org/mailman/listinfo/lug for more information >>> >>> >>> -- >>> Tina Manley >>> www.tinamanley.com >>> tina-manley.artistwebsites.com >>> http://www.alamy.com/stock-photography/3B49552F-90A0-4D0A-A11D-2175C937AA91/Tina+Manley.html >>> >>> _______________________________________________ >>> Leica Users Group. >>> See http://leica-users.org/mailman/listinfo/lug for more information >> _______________________________________________ >> Leica Users Group. >> See http://leica-users.org/mailman/listinfo/lug for more information > > _______________________________________________ > Leica Users Group. > See http://leica-users.org/mailman/listinfo/lug for more information