Hello.  I am trying to learn more about donating artwork in a last
will and testiment, what are the factors to consider, or to donate
artwork as a gift in a will.  Thank you.

Hello and thank you for your question.

Assuming you're giving to a qualified charity, the choice is an income
tax deduction for a lifetime gift vs. an estate tax deduction for a
gift at death.

And that choice depends on which deduction is more useful to you.

For the income tax deduction, you'll need to itemize deductions (so
you'll have to forego the standard deduction and file the regular
long-form Form 1040).  You need to substantiate the value of the
property, and there's a limit on how much of a year's income the
deduction applies to, generally 30% of adjusted gross income.  If your
income is not big enough to allow the whole deduction to be used in
the year of the gift, a 5-year carryforward is available.
Read all about it here:
http://www.irs.gov/pub/irs-pdf/p526.pdf

Missouri's income tax is a tax on adjusted gross income, and since
charitable gifts don't reduce adjusted gross income, they give no
state income tax benefit.
http://www.dor.mo.gov/tax/personal/individual/forms/2005/m1040.pdf

For the federal estate tax charitable deduction, there is a similar
substantiation requirement.  But don't forget, you only have to pay
estate tax if your estate (and unified lifetime gifts) exceeds $2
million.  And if you're leaving most of your estate to a surviving
spouse even that tax is deferred until the death of both of you.  So
if you're not quite wealthy ($4 million if you're married and have a
tax-wise estate plan; $2 million if you're single), there's no tax
benefit to the gift at death.
Read more here:
http://www.irs.gov/businesses/small/article/0,,id=108143,00.html

There is no Missouri estate tax.
http://www.dor.mo.gov/tax/personal/estate/

Search terms used:
charitable gifts site:irs.gov
Missouri income tax
Missouri estate tax

Thanks again for letting us help.

Google Answers Researcher
Richard-ga

---

Clarification of Answer by richard-ga on 07 Mar 2006 07:42 PST

By the way, is there any museum or other place that displays artwork
that would be interested in receiving the gift?  You should talk to
such places in your community.  Otherwise the donee might only sell
what you give them, in which case you might be better off making the
sale yourself and making a gift of some or all of the proceeds.
-R

Thank you!

Please state your country and province/state of residence.

Country - USA  Thank you

I doubt that this question can be well answered without knowing which
state you're in, but this might help a little. This page provides
detailed information on suggested language for bequests of artwork to
a museum in Cleveland, Ohio:

http://www.clemusart.com/museum/giftplan/bequests.html

Tax should also be a consideration:
http://www.nysscpa.org/sound_advice/money_12.2.02.htm

Thank you - the state is Missouri

If there is not state specific information, is there other information
on how to make artwork donations to museums in general?