Many high-net-worth individuals own art that they’re considering donating to a nonprofit with the expectation that the donation will qualify for a tax deduction. Advisors and their clients need to understand the proper steps for documenting and valuing donations to qualify for the tax deduction. A well-executed donation ensures that both the donor and the receiving institution benefit from the transaction while adhering to tax laws and requirements. I’ll cover key areas such as choosing the right institution, obtaining a qualified appraisal from a qualified appraiser and navigating the complexities of the Internal Revenue Service’s reporting requirements.
Choosing the Institution
Before making any donation, donors should understand that th…
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