Christmas is right around the corner. It is the time for giving. Are you considering to donate your Artwork to an Organization this year? We admire and applaud you for your willingness to gift your artwork to a worthy cause. This is a gift that can come back to you as well. There are certain protocols to follow, but if you do it correctly you may be eligible to get a Tax Break on your 2022 Taxes.
Charitable Gifting: There are certain tasks You, the Doneé will have to do before you can Gift. Don’t worry… it is not too much work on your part.
The first thing you will need to do is have your Fine Arts Appraised.
- You have to hire a Credited Appraiser to provide you with an Appraisal Report. (This is where WE come in!)
- The first thing the appraiser does is E-valuate the item/s you wish to donate. This means we will view your artwork in person where we take notes, dimensions, and photos. This will then help us move forward with the research in order to provide a proper and thorough Appraisal Report.
- Once we, your appraiser, have given you the completed Appraisal Report, then you move on to the next thing, you, the Donée, has to accomplish.
The second thing you have to do is give the Appraisal Report to your CPA.
- Your CPA will help you understand all the differing rules and regulation the IRS insists upon in a non-cash Charitable Contribution.
- Deliver the completed Appraisal Report to your CPA.
- They will fill out the IRS form #8283. Once they have completed their portion, they will then scan and email me the form. We will sign it and scan it back, promptly, to your CPA.
- From there the rest is up to you and your CPA.
If you would like to learn more about the Charitable Contribution process, please email us at coronadoappraisalsllc@gmail.com or call us at 619/929-6192. NOTE: the donation needs to take place no later than December 31st, 2022, in order for you to get your Tax Break for this year.
IRS Regulations: There are a few IRS regulations You should remember:
- You can only give to an Organization that is Qualified with the IRS. These are non-profit organizations, such as religious, charitable, educational, scientific, literary in purpose, or that work to prevent cruelty to children or animals. (Publication 526, Page 2) Your item must connect with this organization in some manner. This is the Newest Tax guideline.
- Your Deduction for Contributions on Fine Arts should be Supported by a written appraisal from a Qualified and Reputable source.
- You must have a Completed Appraisal on the gifted item, from a Qualified source in the Art Industry, in order for the IRS to allow your Tax Deduction. If you were not aware of this at the time of gifting, then make sure you get the artwork appraised no later than 60 days after the gifting. Once the 60 day grace period has ended, you may very well not be able to take your Tax Deduction.
- Those who may Not appraise your artwork include, but not limited to, the art dealer from whom you purchased your Fine Art, the Publisher, nor the Printer who produced the Print Edition.
Please note; we continue to Follow and Stay Updated on all Regulations where Fine arts are concerned, from the I R S to the International Society of Appraisers and others. We stay updated not only for us, but for you as well. When you hire us to do an Appraisal or Restoration, then you can rest assured that we know what we are doing. We will take good care of You.
Please be sure to speak with your CPA advisor on everything you have read here in our blog. We are not accountable for the IRS not accepting your Form 8283, nor giving you the Tax Deduction you were hoping.
References: https://www.irs.gov/uac/about-publication-526 and https://www.irs.gov/pub/irs-pdf/p561.pdf.
