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Art Donation Appreciation

ArtworkIf you donate artwork that’s appreciated significantly, make sure you get the highest deduction available. You must clear a number of hurdles before you can write off the full market value of the contribution.

Let’s say you bought a painting for $4,000 a few years ago that’s now valued at $10,000. Donating the painting can generate a $10,000 deduction, which could save you up to $3,860 in federal income tax, depending on your tax bracket. State and local tax deductions may increase your savings.

However, to earn the full deduction, you must meet these tests:

  1. The donated art must have been yours for more than a year
  2. The art must be donated to a public charity or nonprofit group, not to a private foundation
  3. The art must be appraised by a qualified, unrelated party
  4. The “related use” rules must be satisfied. These rules prevent you from deducting the full amount if you donate artwork to a local charity and the organization turns around and sells it.

To pass the “related use” test and earn the $10,000 write-off, donate the painting to an art museum displaying that type of work or to a university that uses such paintings in art history courses.


If you have any questions or require further info please call 718-531-1105 or send an email.


This web site and these articles are not tax or legal advice and are not intended as tax or legal advice.  They are intended to provide only general, non-specific legal information and are not intended to cover all the issues related to the topic discussed.  The specific facts that apply to your matter may make the outcome different than would be anticipated by you.  This web site and these articles are based on United States law.  You should consult with an accountant or lawyer familiar with the issues. This web site and the articles contained on this web site are not solicitations.

Contact Info:

Ronald Semaria
Semaria Consulting
1408 East 66th St
Brooklyn, NY 11234
Email: info@semaria.com

Phone Numbers:

Phone: 718-531-1105
Toll-Free: 866-531-1105
Toll-Free: 888-IRSAUDIT
Toll-Free: 888-RONTAXES
Fax: 718-444-7152

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