Senate Bill Lets Artists Claim Price for Gifts
November 22, 2005
Living writers, musicians, artists and scholars who donate their work to a museum or other charitable cause would earn a tax deduction based on full fair market value under a bill just passed by the Senate. Currently such work receives only a deduction based on the cost of materials unless it is donated posthumously by the estates.
The measure was approved as an amendment to a broader $59.6 billion tax relief bill passed by the Senate early Friday. It now goes to a House-Senate conference committee. The House version of the tax relief bill does not include the arts provision, but the senators who introduced the amendment - Charles E. Schumer, Democrat of New York, and Pete V. Domenici, a New Mexico Republican - said they were hopeful that the committee would support it. Under the bill, artists could donate their work during their lifetimes at full market value provided that it is properly appraised and handed over at least 18 months after it is created.
The provision seems likely to open the way for more acquisitions by cash-strapped museums. "It's very important for cultural institutions and libraries to be able to be the recipient of these works of art that otherwise might go into private hands," said Mimi Gaudieri, the executive director of the Association of Art Museum Directors. "Especially for small to midsize institutions with modest acquisition funds, as a gift from the artists, it's a great opportunity to enhance their collections," Ms. Gaudieri said.
The donated work must be related to the purpose or function of the museum or
charitable organization receiving the donation.
source: New York Times