As with gifts of long-term capital-gain securities or real estate, you are entitled to a charitable deduction for a gift of long-term capital-gain tangible personal property such as works of art, rare books, and stamp or coin collections not created by the donor. How much you can deduct depends on the so-called standard of “related use.”
Here is how the standard is applied: If the use of the contributed property is related to the exempt purposes of a charity (e.g., a painting or rare books concerning Lewis County to the Historical Society), you are entitled to a charitable income-tax deduction for the fair-market value of the property.
If the use of the contributed property is unrelated to the exempt purposes of the charity (e.g., a valuable surf board collection tothe Lewis County Historical Societyto sell and use the proceeds), you are entitled to a charitable deduction for your basis in the property.
A donor who contributes a work of art that the donor created is limited to the actual cost of producing the work for the charitable deduction.
How It Works
- Please call us to discuss the type of tangible property, possible uses of your gift by the Historical Society, and getting an appraisal
- You receive a charitable income-tax deduction for the full fair-market value of the property if the gift’s use is related to the exempt purposes of the Lewis County Historical Society
- If the use is unrelated to our exempt purposes or if it’s understood that we will be selling the property, then the deduction is limited to your cost basis (i.e., your acquisition price for the property)
- You receive a federal income-tax deduction for the fair-market value if the gift’s use is related to the charitable purposes of the Lewis County Historical Society
- You avoid capital-gain tax on long-term related-use property
- You provide significant support for the Lewis County Historical Society without affecting your income
Special note: You should call or email us to tell us of your intent with regard to the property, and we will be able to assist you with the details of the transfer.