[Leica] OT: What would you do?

[Ken Carney]

That's correct.  Under §170(e), IRC, the fair market value must be 
reduced by any ordinary income that would be recognized on a sale. In 
other words, for all practical purposes donations of self-created art 
are limited to cost of producing it.  It gets worse.  If the item is not 
self-created, and is not donated "for the use of" the charity, then the 
deduction is reduced by any gain that would be recognized.  So if you 
donate the Picasso to a charity for the purpose of the charity selling 
it, your deduction is limited to your cost.  And if the appraisal rules 
kick in, they apply to the total of similar items donated, not each 
individual item.

It gets worse.  Suppose you are a really gifted photographer and you 
create a photo worth, oh I don't know, say $6.5 million and hang on to 
it.  You have probably created a death tax liability of 40% of that.  
Enough for one day.

Ken


On 1/8/2015 1:18 PM, Wilbur Norman wrote:
> In regards to Tina's comment:
>
> I believe the deductions she is referring to are for items NOT CREATED BY THE PERSON who is making the donation. So, if you donate a Picasso, you get a Fair Market Value. For items created by the artist donating, its another ball of wax.
>
> And, I believe the ceiling for NOT getting an appraisal is $5000 as amended in the Pension Law some years ago (seems odd but thise folks in DC add non-related items to laws all the time.)
>
>
> Wilbur
>
>
>
>
> *************
>
> On Jan 8, 2015, at 12:02 PM, Susan Ryan wrote:
>
>> Can you take a tax deduction for a charitable donation? If so, how do you choose a dollar value of the photos donated?
>>
>> Thanks,
>> Sue
>>
>> Sent from my iPhone
>>
>>> On Jan 8, 2015, at 11:50 AM, Tina Manley <tmanley at gmail.com> wrote:
>>>
>>> That's probably the best solution - donate to charity auctions.  I've done
>>> that quite a bit and it's always appreciated.
>>>
>>> Tina
>>>
>>> On Thu, Jan 8, 2015 at 1:49 PM, Doug Herr <wildlightphoto at earthlink.net>
>>> wrote:
>>>
>>>> Donate to charity auctions?
>>>>
>>>> Doug Herr
>>>> Orangevale, Sacramento County
>>>> http://www.wildlightphoto.com
>>>> http://doug-herr.fineartamerica.com
>>>>
>>>>
>>>> -----Original Message-----
>>>>> From: Robert Adler <rgacpa at gmail.com>
>>>>> Sent: Jan 8, 2015 10:07 AM
>>>>> To: Leica Users Group <lug at leica-users.org>
>>>>> Subject: [Leica] OT: What would you do?
>>>>>
>>>>> I have a dilema. I'm moving back into my old home and clearing out 25+
>>>>> years of "stuff", Clean sweep.
>>>>>
>>>>> I know some of you have been through this recently (George/Tina/etc.). I
>>>>> have a ton of framed prints that haven't sold at galleries/coffee shops,
>>>>> but that doesn't mean they aren't lovely (IMO).
>>>>>
>>>>> They are custom framed and mounted. Archival. The works. I don't want to
>>>>> give them away (I think that devalues all art), and I don't want to pack
>>>>> and ship them to folks.
>>>>>
>>>>> Please PLEASE suggestions? The dump just seems wrong..
>>>>> Thanks!
>>>>> --
>>>>> Bob Adler
>>>>> www.robertadlerphotography.com
>>>>>
>>>>> _______________________________________________
>>>>> Leica Users Group.
>>>>> See http://leica-users.org/mailman/listinfo/lug for more information
>>>>
>>>> _______________________________________________
>>>> Leica Users Group.
>>>> See http://leica-users.org/mailman/listinfo/lug for more information
>>>
>>>
>>> -- 
>>> Tina Manley
>>> www.tinamanley.com
>>> tina-manley.artistwebsites.com
>>> http://www.alamy.com/stock-photography/3B49552F-90A0-4D0A-A11D-2175C937AA91/Tina+Manley.html
>>>
>>> _______________________________________________
>>> Leica Users Group.
>>> See http://leica-users.org/mailman/listinfo/lug for more information
>> _______________________________________________
>> Leica Users Group.
>> See http://leica-users.org/mailman/listinfo/lug for more information
>
> _______________________________________________
> Leica Users Group.
> See http://leica-users.org/mailman/listinfo/lug for more information