Do you own Art you No longer Love? Perhaps you are thinking you want to Sell it? However, there are many things to think about when moving forward with this process. You may not realize, but Selling your Fine Arts could take months to a year before it is Sold and Processed. Let us share with you another way you can Let Go of your artwork: Charitable Contribution!
There is much less time and effort involved with Charitable Giving than when Selling your Fine Arts. You might be able to take the Entire amount as a Tax Credit under Charitable Gifting, or perhaps, it could give you a Tax Deduction for many years to come. Now you have helped someone or some cause tremendously and still you were able to benefit from this action.
Think about this: If you are planning to sell… Your ‘piece’ must be clean, handsomely framed, AND THEN smoothly presented to a Consignment Gallery or for showing to a possible buyer. Whereas, if you do decide to Contribute, rather than sell, you may well end up with a CARRY-FORWARD, PASSIVE LOSS, which sounds complicated, but actually is not. It can be extraordinarily helpful in today’s world. It means you may have a tax deduction for several years, going forward.
Now that I have you thinking about Charitable Contribution, you might be wondering what the exact process is in getting this done:
Four Things for sure, you need to do:
- You must get the TAX I.D. number for the non-profit organization to which you are contributing.
- Their signed letter (by someone on the Board of Directors) of acceptance, specifying your item, by name and description.
- The Price you and the organization have agreed upon, noted in the body type of their letter.
- The Federal form #8283, signed by me, or your current appraiser, for the year in which you are Giving. You will have to contact me/your appraiser at that time.
You have to … have to.. make sure these steps are done properly. If it is going into auction, you need to make sure you know what your Fine Arts will be auctioned off at, and/or write down what you know the value is. In order to do this, you must have your Art appraised! Trust me, I have seen paintings, which valued highly, auctioned off at a much lower price, which means the donor’s Tax deduction will be little as well.
As always, check with your C.P.A./ Tax Advisor before Charitable Gifting, since Tax laws change each and every year. IRS Website on Charitable Contribution
If you have further questions regarding the Charitable Contribution/Gifting or the Selling Process email us at email@example.com or you may call our Appraiser, Ninya Lee Greek, direct at 619/929-6192.