"Child with a Bird", original lithograph by Boulanger

There are many reasons why you may wish to donate a work of art. A few are to create a lasting legacy, support a charitable organization or to receive a tax deduction. Before you choose to do this, it is wise to consult with your tax professional in order to correctly document the transaction in order to avoid any problems with the IRS.

The first thing to determine is if the organization is a qualified public non-profit group and if they want the art. The donation would also need to meet the "Related Use Rule". This rule requires that the use of the art by the receiving organization be for the purpose or function of that charitable group. In other words, a museum would display the art so it would meet this requirement. An organization which feeds the poor would not use art to further their purpose or function, so would not meet this rule. Although, if they had headquarters where they could display art that reflected their purpose, it might meet the related use rule.

An appraisal by a qualified appraiser is needed for items with a value over $500. which needs to be retained by the tax payer but does not need to be submitted to the IRS. An appraisal report completed prior to 60 days of the donation is needed if the art has a value of $5,000. or more. A completed appraisal summary report will need to be included with the tax payers return. The complete signed appraisal report will need to be submitted to the IRS if the art is valued at $20,000. or more.

A recommended tip for art that has appraised at $50,000. or more is to request a Statement of Value from the IRS. There is a fee for this, but it would be well worth it to avoid penalties.

Artists can only deduct the costs of the materials, such as: canvas, paint, clay, for any art that they created. They are not allowed to deduct the fair market value of their art.

Click Graciela Rodo Boulanger  for more information about the illustrated artist and to find a link to see more of her work.