Those concerned with appraisals of donated materialswill want to read /
know about an article in this morning's New York Times, page B-1:
"Senate Bill Lets Artists Claim Price for Gifts"
If passed by both houses this will be a truly major change in appraisal
rules, changing an IRS rule that I believe dates back to the late 1960s.
IF passed by both houses, the fair market value of a donated work
product item rather than the cost of the paper, or canvas can be
deducted. Note that thus far this has only been passed in the Senate.
It apparently, but not clearly, applies to scores, manuscripts, etc.
The tax bill with "the arts provision" (as it is referred to in the
article), has passed the Senate and although it is NOT now in the House
bill,it is expected to be there. The NYTimes article also talks about
making clearer to taxpayers, and possibly changing, rules on qualified
appraisers. Timing uncertain. And the resulting IRS language is yet
to come and will be key. And no doubt there will be cases testing the
bounds of the rules. Of course, the details will matter.
CHARLES A. GOLDSMID
Member ABAA / ILAB phone 909-624-0757
Claremont Books & Prints fax: 909-625-2543
128 Yale Avenue, Upstairs goldsmid@mindspring.com
Claremont, CA 91711 USA goldsmid-allen.com