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#6
09-28-2003, 12:22 PM
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 Re: Artist Donating their Own Artwork to Charity MichelleinAtlanta wrote: - quote - > Isn't the charitable donation limited to the material costs?
You are correct and your client is wrong.> I have an artist client who thinks she is entitled to deduct > the sales price of her paintings donated to charity. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#5
09-26-2003, 08:50 AM
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| Re: Artist Donating their Own Artwork to Charity "MichelleinAtlanta" <me[at]you.com> wrote: - quote - > Isn't the charitable donation limited to the material costs?
Her donation is limited to her "cost basis" for works she> I have an artist client who thinks she is entitled to deduct > the sales price of her paintings donated to charity. created. That would be the cost of materials - her effort is worth -0- for this purpose. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
09-26-2003, 08:50 AM
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| Re: Artist Donating their Own Artwork to Charity MichelleinAtlanta wrote: - quote - > Isn't the charitable donation limited to the material costs?
Funny thing, sometimes I'll tell a clinet "NO; nada, no> I have an artist client who thinks she is entitled to deduct > the sales price of her paintings donated to charity. way, jose", and then offer to quote chapter and verse. Usually of course that's not necessary, but there have been cases when they said no, but next year found somebody else. (sound familiar, anyone?) So, I would say DO quote her chapter and verse, say a photocopy of that chapter on Contributions relating to value of contributed labor in publication 17. While not THE tax law, it's adequate for these purporses. Cheer$, Harlan Lunsford, EA nexdoor in LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
09-26-2003, 08:31 AM
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| Re: Artist Donating their Own Artwork to Charity MichelleinAtlanta <me[at]you.com> wrote: - quote - > Isn't the charitable donation limited to the material costs?
Yes.> I have an artist client who thinks she is entitled to deduct > the sales price of her paintings donated to charity. Pub 526 discusses charitible contributions and assuming an artist is in the business of creating art, the contribution is the lower of cost basis or FMV on date of gift. Cost basis is stated to be zero if the business property was not in inventory at beginning of the year. Pub 551 (middle of p 3) tells us that cost of created property is its cost basis. So lower of cost basis or FMV is almost always the cost of creating the item. Time and services are also stated to not be part of the charitible amount or the basis. I know IRS Pubs are not the official word but when pressed by a client I usually photocopy a couple of pages of pubs and circle the paragraphs in red pencil and say, There you go -- see why it's not allowed? us that the __ Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
09-26-2003, 08:12 AM
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| Re: Artist Donating their Own Artwork to Charity "MichelleinAtlanta" <me[at]you.com> wrote - quote - > Isn't the charitable donation limited to the material costs?
Yup.- quote - > I have an artist client who thinks she is entitled to deduct
Welcome to the real world.> the sales price of her paintings donated to charity. I'm trying to claim a $85 million loss because I didn't have the winning Lottery ticket. -- Paul A. Thomas, CPA taxman at negia.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
09-26-2003, 08:12 AM
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| Re: Artist Donating their Own Artwork to Charity - quote - > Isn't the charitable donation limited to the material costs?
She thinks wrong.> I have an artist client who thinks she is entitled to deduct > the sales price of her paintings donated to charity. Helen, EA in PA Member of The Tax Gang President, PA Society of Enrolled Agents Campaigning for NAEA Board of Directors - Looking for YOUR vote << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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09-26-2003, 07:53 AM
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| Re: Artist Donating their Own Artwork to Charity MichelleinAtlanta <me[at]you.com> wrote: - quote - > Isn't the charitable donation limited to the material costs?
All creative geniuses believe donations of their work should> I have an artist client who thinks she is entitled to deduct > the sales price of her paintings donated to charity. be valued at what they believe the market is. It just ain't so. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
09-25-2003, 04:54 AM
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| Artist Donating their Own Artwork to Charity Isn't the charitable donation limited to the material costs? I have an artist client who thinks she is entitled to deduct the sales price of her paintings donated to charity. Thanks. Michelle Botwinick, CPA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| artist, artwork, charity, donating |
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