A person’s mood and emotions keep on changing according to the situation. Paintings especially which you see daily play an important role in it. As the paintings carry emotions and expressions, they possess the power to have an impact on human feelings. If you have a painting, no matter how good or expensive it is, if it is irritating you or some of your family members then you must get rid of it. No! Don’t throw it in the garbage but donate it. There are some charities that will accept them.
If you are going to change the look of your house and not getting what to do with the old paintings, then also you can contact a charity to make better use of them. It is not that you won’t be getting any benefit from this doing. The government will give a tax deduction for it but there are some necessary procedures for it. If you are going to donate any type of artwork whether it is your own creation or some others, you must avail this benefit from the government. Here are some points that you must know, before donating the art to enjoy a tax deduction.
Donate to a public charity within the country – The first thing you need to keep in mind is that you must donate the art to the country based charity otherwise the government Tax agency cannot help you. If the internal charity to which you gave your painting or artwork is going to use it in some foreign country then it is fine, you can have the benefit. For it, you can ask for the exemption letter of the charity from the government or you can also check for it on the official website of the government.
Time duration is also considered – In order to have the income tax deduction, you must have owned the artwork at least for one year. Don’t purchase any artwork with the intention to have the tax deduction within the same year. Do not donate anything which is not a long term capital property of yours.
Know the intentions of the charity – If you are going to donate an artwork to the charity then you must have a proper conversation with its representative. You must know what they are going to do with your donation. Most of the charities in order to raise their funds often give artworks for auctions. If the artwork of yours is worth $5000 or more then, it is necessary that the charity must keep it for at least three years to avail the fair market value tax deduction.
Know the criteria –In order to take the tax benefit from the donation, you must meet the qualification that is set by the government. You need to be an investor or collector of the artwork as per the government rules. The tax deduction cannot be taken if you are a known artist or an art dealer.
With these things in mind, you will surely be able to get the best benefits against the artwork you own.