Skip to Main Content
GiftLaw Pro
Charitable Giving & Tax Information Service
Back to Gift Planning Website
GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.1 Art Gifts and Valuation  >  4.1.5 Valuation of Art  >  Basic Quiz

Basic Quiz - 4.1.5 Valuation of Art

1. The value of an item for charitable deduction purposes is determined by what the donor thinks the property is worth.
           
2. The IRS frequently audits donors to see if they have overvalued gifts of art made to charity.
           
3. If the Service determines that a donor has overstated a charitable deduction, it can impose a 20% penalty, which is the maximum penalty allowed by law.
           
4. To ensure a correct and proper valuation, an appraisal must be made at the time of the gift.
           
5. If an appraisal is required, the appraiser and the charitable donee must sign Form 8283.
           
6. Any gift of artwork where the donor claims a deduction of $5,000 or more must be supported with a qualified appraisal.
           
7. In order to qualify for a charitable tax deduction, it may be necessary for the donor to submit a photo or color transparency of the artwork with the appraisal.
           
8. If a donor gives a fractional undivided interest in a piece of art, his or her charitable deduction may be reduced for lack of marketability and control.
           
9. A donor must file Form 8282 if the contributed property is subsequently sold by the charity.
           
10. When computing the charitable deduction for a tangible personal property gift into a CRT, the Applicable Federal Rate (AFR) for the contribution month or the prior two months must always be used.