This letter is given to all of our firm’s clients. We believe this information is valuable if you are thinking about selling your art. Therefore, we wanted to share it with all who are interested.
This is helpful information, If you plan to sell:
- You may, of course, deliver the parchment page form, with the signature forward to the purchasing party.
- Initially, share these white, non-signed, forms with your prospective buyer or deliver “same” forward to the Consignment Gallery, Fine Arts On-line Boutique, or with whomever you decide to work with in the selling process.
- After you have been paid in full, you may deliver the “parchment, signed form” to your buyer, or go through the Selling Gallery. This will make sure you get paid in a timely manner, by the gallery or the individual.
- That individual, corporate entity, museum, purchasing party, etc. will have to contact me, pay a small fee and have the certificate re-calculated and put into his or her name. My name and contact information is readily available on the parchment page form.
- Please, be aware that the actual sales price will be listed as the Value of Record on the Appraisal Form, along with their name and address. The form has to be in their name, in order for them to acquire insurance coverage, or show ownership.
Charitable Contribution is one suggestion. There is much less time and effort involved, and you may take the entire amount as a tax credit under Charitable Giving: Please, check with your C.P.A. on this, as TAX laws change each and every year. The allowed amount differs for artists, those who are self-employed, retired, plus other factors. You must include my white form, stapled to your Charitable Giving form on your current IRS statement for the year in which the gifting occurred, together with the letter from the Tax Free Organization to whom you gifted. Additionally, you must mail to me, the completed form #8283, and I’ll return it…signed… promptly to you. Please, be sure to prepare Form #8283 in concert with your Tax Advisor. If you get the wrong year or mis-state anything at all, your Charitable Giving deduction will be denied or held up. He or she will no doubt have that form in his or her office. The correct year is mandatory.
Think about this: As 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 it 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. This could be helpful indeed… Again you must check with your Tax advisor on this. This Tax Deduction is against passive income, which is other than Earned income (wages, commissions, salary, etc.). We also need to discuss that while I am here: “The Basis”, which is your cost of purchase/acquiring… that includes my charges, and your time and expenses involved in the selling process. This could be helpful information,…. If you are the one who would be involved in the Selling Process.
Five Things for sure, you need to do if you are planning Charitable Contribution:
1.) You must get the TAX I.D. number for the non-profit organization to which you are contributing.
2.) Their signed letter (by someone on the Board of Directors) of acceptance, specifying your item, by name and description.
3.) The price you and the organization have agreed upon, noted in the body type of their letter.
4.) The Federal form #8283, signed by me, for the year in which you are Giving. You will have to contact me at that time.
5.) My plain White form, as I mentioned, above; herein included with this cover letter.
This is information is also included in our letter, and it is helpful if you decide not to sell or give as a Charitable Contribution.
Many people misunderstand; the premium dollars that you will have to pay for the Fine Arts Rider on your Homeowners Policy has little or nothing to do with the”number of” or value of all the Fine Art and Collectibles, you own. The premium is based largely on the stated value of your Home…. no matter how many pieces of Fine Arts are included in the inventory.