fbpx

Artwork Valuations in Virginia: In The Eye Of The Beholder?

MB900036448[1]Charitable gifts of artworks almost always present valuation issues. An appraisal by a respected, unbiased expert is key to ubstantiating a charitable deduction for a donated work of art. The Internal Revenue Service has its own experts: the Art Advisory Panel.

 Valuations of artwork exceeding $50,000 must be sent to the panel, though smaller claims may be referred as well

 

When it comes to art, you have heard that beauty is in the eye of the beholder. However, have you heard that value is in the calculations of the appraiser? It is. And the IRS has a stable full of appraisers known as the Art Advisory Panel.

A recent article on WealthManagement.com titled “Charitable Gifts of Artworks Part 2follows on the heels of part 1 of the same article and gets into the nuts and bolts of art valuations. At the outset, it is valuable to know that the Panel exists, but it is essential that you know in advance how to plan for it.

You see, since the value of anything is determined by the market for it (from gold to grain to stocks, and yes, art), you must prove the tax consequences to the IRS whenever you transfer ownership to any charity or other
recipient.

Taxpayers by nature want a gift to charity to receive a higher value and a gift to a loved one to receive a lower value. The Art Advisory Panel is there to check your work, or the work of your appraiser, and be sure that the right taxes have been paid.

If you intend to give, whether to charity or others, then the Art Advisory Panel will need to be convinced of the value you set.

Plan accordingly.

You can learn more about this topic as well as other strategies on our website under
the tab entitled: estate planning in Virginia.  Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning.

Reference: WealthManagement.com
(August 26, 2013) “Charitable Gifts of Artworks Part 2

  

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest

Leave a comment

LIKE THIS POST?

We have a LOT more where that came from!

We hate spam too. We will never share or sell your information.

Call Now ButtonCall Us Now https://jsfiddle.net/7h5246b8/

Request a free consultation

We hate spam too. We will never share or sell your information.

We've been putting together as many resources as possible so that we can continue to help:

  • If you’re a current client with a signing appointment or a prospective client with a consultation and would prefer that meeting take place in your own home, we can accomplish that with a little bit of pre-planning on our part and with the addition of a laptop, smartphone, tablet or other computer in your home to facilitate this virtual meeting. For those of you that need to sign legal documents, that too can be accomplished with the use of a webcam (FaceTime etc.), so that we can witness and electronically notarize all of your important legal documents.
  • We launched the rollout of our on-demand webinar early so that new clients and our allied professionals can view the important component parts of ‘an estate plan that works’ at their convenience.  That is available on our website.
  • Live video workshops will be produced as quickly as possible and certainly ahead of our previous schedule; we will keep you posted as these events become available. Given the ‘boutique’ nature of the firm, we rarely have more than ten people in our office including team members at any one time. During this period of ‘social distancing,’ we promise to have no more than 8 people at any time.   This allows us to comply with the Governor’s directive to limit in-person gatherings.
  • The best way to communicate with us is still by phone during regular office hours of 8:30 to 5:00, Monday through Friday, or, you can email any of our team members (that is, their first name followed by @zarembalaw.com).  We will respond to these emails as quickly as possible.
  • Please continue to follow the directives of our local, state, and federal agencies. For your health and in consideration of our team who is assisting you, if you’ve scheduled an office appointment or planned to drop off paperwork and are experiencing a fever, dry cough, or shortness of breath, please contact your primary care doctor for guidance and then our office to reschedule.

Thank you, Walt and the Zaremba Team

Coronavirus/Covid-19
Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.