Charity auction portrait donations and taxes

[Chris Saper]

Unfortunately the Artist-Museum Partnership Act, aka Artists Fair Market Valuation Bill failed to pass the House this past season. No guesses on whether or when it might resurface.

Also unfortunately, your client who purchases a painting from you for $5K and then donates it will receive his maximum allowable deduction.

Don't even get me started on this.

The only way to deal with this, I think, is to donate a gift certificate for a partial credit toward a commission, of for a less costly commission (eg charcoal portrait) that has yet to be done, where there is an opportunity for you to realize the balance/ upgrade outside the auction constraints.