Nottingham Arts on sun 6 jan 08
I have a question for our cpa and otherwise knowledgeble members.
What is the tax deduction claimable for work donated to a tax exempt
organization ?
For example: if one made a piece of art / craft that was donated for an
aution by a tax exempt group can one claim a deduction based on the
auction sale price ?
My current understanding is that one can not do this. That only the cost
of materials and manufacture can be deducted regardless of the auction
price.
If you want to respond to me personaly then DO NOT respond to the email
heading for the post on Clayart as it will be filtered out.
Personaly respond to me at: go2tms@sbcglobal.net or respond via the
Clayart listserve.
Thanks in advance to any who respond.
Yours,
Terry Sullivan
Director and Chief Gofer
Nottingham Center for the Arts
San Marcos, CA
www.nottinghamarts.org
PS- we have a completely revised/ redone web site. Go have a look at it.
There are even pics of my own work.
Bonnie Hellman on mon 7 jan 08
Hi Terry,
Nothing has changed to date.
An artist has presumably already deducted the cost of materials, and
therefore has a Zero Dollar cost basis in the work he/she makes. When a
product is donated to a tax exempt organization, the donor can deduct the
lower of his/her cost or market, and zero is as low as it gets.
The creator of the work therefore gets no additional deduction for donating
work that he or she made.
Bonnie
Bonnie D. Hellman, CPA in CO & PA
Ouray, Colorado 81427
As required by United States Treasury Regulations, you should be aware that
this communication is not intended or written by the sender to be used, and
it cannot be used, by any recipient for the purpose of avoiding penalties
that may be imposed on the recipient under United States federal tax laws.
----- Original Message -----
> From: "Nottingham Arts"
> To:
> Sent: Sunday, January 06, 2008 7:57 PM
> Subject: Tax Deduction for donated work
>
>
>>I have a question for our cpa and otherwise knowledgeble members.
>>
>> What is the tax deduction claimable for work donated to a tax exempt
>> organization ?
>>
>> For example: if one made a piece of art / craft that was donated for an
>> aution by a tax exempt group can one claim a deduction based on the
>> auction sale price ?
>>
>> My current understanding is that one can not do this. That only the cost
>> of materials and manufacture can be deducted regardless of the auction
>> price.
>>
>> If you want to respond to me personaly then DO NOT respond to the email
>> heading for the post on Clayart as it will be filtered out.
>>
>> Personaly respond to me at: go2tms@sbcglobal.net or respond via the
>> Clayart listserve.
>>
>> Thanks in advance to any who respond.
>>
>> Yours,
>> Terry Sullivan
>> Director and Chief Gofer
>> Nottingham Center for the Arts
>> San Marcos, CA
>> www.nottinghamarts.org
>>
>> PS- we have a completely revised/ redone web site. Go have a look at it.
>> There are even pics of my own work.
>>
>> ______________________________________________________________________________
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>>
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>
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