Portrait Artist Forum - View Single Post - Charity auction portrait donations and taxes

Joan Breckwoldt · 04-21-2004, 08:48 PM

I suppose there is no logical answer to this question but I'll ask it anyway. I have yet to donate a portrait at an auction though I did sign up to donate a painting (of some kind) at our church's upcoming auction (in September so I've got some time). It'll be great exposure, tax advantage or not. And apparently there's NOT from reading the previous posts.

Here is my question, if someone donates a charcoal drawing for $200, doesn't the artist then get to write off the $200? Especially if the true market value is proven by someone paying $200? And if the artist donates a large oil portrait that would normally sell for $5000 (hypothetically speaking!), why, in heaven's name wouldn't the artist be able to deduct the $5000? I'm going to donate some other items (not art related) so it'll be interesting to see who sets those prices, I was planning on filling out the value myself, just like when I drop off things at Goodwill and the local church resale shop. I used to volunteer at the resale shop and the DONOR would fill in their own values. Doesn't make a lot of sense to me . . .

We even had someone bring in an oil painting to the resale shop and put the value of their donation at $2000. This caused a problem since the painting was something from a garage sale. (Not that you can't find great things at garage sales, my point is that it was a nothing painting and the donor did this as a tax scam.) I'm off the subject now.

I suppose next year our tax accountant can explain all this. And Michele, what a clever tax accountant you have. I will remember your tip.

Joan

04-21-2004, 08:48 PM	#10
Joan Breckwoldt Associate Member Joined: Nov 2001 Location: Houston, TX Posts: 504	Confused I suppose there is no logical answer to this question but I'll ask it anyway. I have yet to donate a portrait at an auction though I did sign up to donate a painting (of some kind) at our church's upcoming auction (in September so I've got some time). It'll be great exposure, tax advantage or not. And apparently there's NOT from reading the previous posts. Here is my question, if someone donates a charcoal drawing for $200, doesn't the artist then get to write off the $200? Especially if the true market value is proven by someone paying $200? And if the artist donates a large oil portrait that would normally sell for $5000 (hypothetically speaking!), why, in heaven's name wouldn't the artist be able to deduct the $5000? I'm going to donate some other items (not art related) so it'll be interesting to see who sets those prices, I was planning on filling out the value myself, just like when I drop off things at Goodwill and the local church resale shop. I used to volunteer at the resale shop and the DONOR would fill in their own values. Doesn't make a lot of sense to me . . . We even had someone bring in an oil painting to the resale shop and put the value of their donation at $2000. This caused a problem since the painting was something from a garage sale. (Not that you can't find great things at garage sales, my point is that it was a nothing painting and the donor did this as a tax scam.) I'm off the subject now. I suppose next year our tax accountant can explain all this. And Michele, what a clever tax accountant you have. I will remember your tip. Joan