This came up recently as a listserve topic, although I do not remember if
it was here.
The response from a couple sources was that the current state of the law
has not changed. Artists can only claim the costs of the materials involved
in their work.
There is a bill up for consideration which might change that, but it has
stalled for one reason or another. It seems unlikely it will pass, as there
has been such a bill proposed periodically for decades, and it has never
passed. There was no speculation as to the reason that it never passes, but
my suspicion is that it gets shot down by IRS interests.
Why would the government find it useful or feasible to allow such a thing?
To put it another way...An artist who paints a painting for $200 in
materials and sells it for $100000, clearly makes a lot of money and will
pay significant taxes. Why would the IRS allow that artist to paint a
couple more paintings, donate them, then write off $200000? Sounds nice for
the artist, but a wash for the government.
Perhaps the IRS's issue concerns subsequent owners/buyers taking capital
gains/losses on the works. If the artist takes the tax benefits, then it
might have a negative effect on future ability to do so. How would a donor
take tax benefit for giving us a work if that has already been done by the
artist initially?
Discussion? An interesting topic.
Mark Janzen
Registrar/Collections Manager
Edwin A. Ulrich Museum of Art
Martin H. Bush Outdoor Sculpture Collection
Wichita State University
(316)978-5850
Sara_Hignite@AISM
AIL.WUSTL.EDU
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Subject
Artist Fair Market Value Deduction
10/05/2005 11:12
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Does anyone know where tax law currently stands on artists making donations
of their own artwork?
I know that there have been several bills presented to Congress over the
past few years, most recently in February of this year. However, I can't
find any specific information on the status of this bill. So, I'm assuming
that it has yet to make it through the system, which means that artists can
still only deduct the cost of materials used to make a donated artwork,
versus deducting the fair market value of the work.
Any knowledge you can share will be much appreciated!
Thanks,
Sara
Sara Rowe Hignite, Registrar
Mildred Lane Kemper Art Museum
Sam Fox School of Design & Visual Arts
Washington University in St. Louis
One Brookings Drive, Campus Box 1214
St. Louis, MO 63130
Tel. 314.935.5385; Fax 314.935.7282
http://kemperartmuseum.wustl.edu
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