Tax Bill "Artists' Provision" Still Under Consideration
February 8, 2006
Washington, D.C. - Today the House of Representatives approved a motion to send the tax reconciliation bill to conference with the Senate. The Senate version of the bill, now numbered H.R. 4297, includes several provisions that would affect the arts, some positively and some negatively, according to Americans for the Arts, the nation's leading nonprofit arts advocacy organization.
On the positive side, AFTA says, one provision would allow artists to take a fair-market value tax deduction when they donate their own works of art to charity, and another would allow individuals aged 59 1/2 or older to roll over funds from their IRA accounts to charities without realizing the proceeds as taxable income. However, a more controversial provision would restrict deductions for charitable gifts by taxpayers who "itemize" their deductions (i.e., those who fill out Form 1040 Schedule A). The Senate bill would prevent these taxpayers from taking charitable tax deductions for the first $210 of their donations ($420 in the case of married joint filers). Americans for the Arts has taken a position against the proposed new floor on charitable deductions for itemizers. The House did not include any of the charitable reform provisions above in its tax reconciliation package. Therefore, a House-Senate conference committee will need to strike a compromise.
The conference is expected to run through February and possibly even into March.
To send a quick message to your elected representative about the Artist Deduction Bill before Congress, visit this page: http://capwiz.com/artsusa/issues/alert/?alertid=8258876&type=CO