FAQ- Charitable donation

Yes, Non-Cash Charitable Donations are qualified for a Fair Market Value tax deduction. Artworks valued over $5,000 require a qualified Appraisal Report and accompanying IRS 8283 form.

The Appraisal Report may be issued up to 60 days ahead of the ratification date of the donation, or anytime after the transfer of property, before the tax filing deadline. The Effective Date of the Appraisal Report is the date of the transfer of property.

Artworks with value in excess of $50,000 USD require three comparable sales to be included in the report. However, in order to be thorough Appraisal Bureau normally includes comparable sales for lower valued works as well.

The IRS 8283 form must be completed by the Appraiser who signed the Appraisal Report, and additionally acknowledged by the donee.

If sold within three years of the date of the transfer of property, the donee must file an 8282 to the IRS, in which case the tax deductions are not honored.

Appreciated values are not honored in this case – the deduction amount is purchase price.

Fair Market Value, which relies on the most appropriate marketplace to reflect the amount at which the artwork would trade in an open market with a willing buyer and willing seller. This may be auction, gallery retail, private sale – or a combination thereof.

It is possible to file retroactively, with the Effective Date matching the original ratification date.

Reach out to Museum Exchange! Or ask us for more details.