From: Richard Joslin To: Jeffrey E <[email protected]> CC: "Lawrence Delson Subject: gift of appreciated tangible property to public charity Date: Wed, 16 Jul 2014 19:47:06 +0000 EXECUTIVE SUMMARY: A donor will receive a fair market value (FMV) deduction for a charitable gift of tangible personal property that is held long term and is appreciated in the year the gift is made, notwithstanding that the donee organization sells or disposes of the property for consideration within three years, as long as the donee organization provides to the IRS the following signed statement (Form 8282) that: (1) Certifies the use of the property by the donee was substantial and related to the purpose or function constituting the basis for the donee's exemption under section 501, and substantiates how the property was used and how such use furthered such purpose or function, or (2) states the intended use of the property by the donee at the time of the contribution, and (II) certifies that such intended use has become impossible or infeasible to implement. ANALYSIS: §170(e)(1)(B) provides generally that deductions for contributions of tangible personal property ("art" or "property") are limited to the donor's basis in the property. However, a donor is allowed a deduction for the property's FMV if sale of the property would produce long term capital gain for the donor and the property is used by a public charity for a purpose related to the charity's tax exempt purposes. Note that in order for the donor to claim a charitable deduction for the gift of property, a "qualified appraisal" of the property must be obtained if the value is greater than $5,000. Form 8283 must be attached to the donor's tax return and be signed by "qualified appraiser" and the donee organization. The donee organization "affirms that in the event it sells, exchanges, or otherwise disposes of the property... within 3 years after the date of receipt, it will file Form 8282, Donee Inform