Art & Antiques by Dr. Lori
Protecting
your
Collections
All of us have art, antiques, and collectibles
that we have acquired over the years. No
matter what family heirlooms we have or
what antiques we like to collect, there are few
things we should all know about our collections
and protecting them. Here are some tips
about donations, obtaining insurance, and tax
implications.
Donations are complex but insurance is pretty straightforward. The deal with
insurance for your art, antiques, or collectibles is simple. If something you’ve
collected is valuable—based on monetary or sentimental value—then, you’ve
got to protect it with insurance. If you don’t insure it and something happens
to it, you are out of luck. I think it is worth paying the premium to protect your
valuables.
Insurance
How do you get insurance? You need a current appraisal of value for your
collection which meets the standards set by the insurance industry. Accord-
You want to make a donation? Here are some of the rules for making charitable
donations according to the Internal Revenue Service. Before you make
decisions about donations or financial matters, it is always wise to consult with
a tax professional or accountant. This information should not be used in place
of a consultation from a professional financial advisor or other expert in the
field of tax preparation, accounting, etc.
Tax Deductions
You may receive a tax deduction for a donated item’s full value up to 30% of
your adjusted gross income. If you donate a collection while you are still alive,
you must be sure to make the donation properly. It is a little-known fact but in
order to command the biggest tax deduction for your donation, your donation
must be for related-use. What’s that? If you are gifting a work of art to an
organization that is typically not in the business of displaying art, then your donation
may not be considered related-use. So, you cannot get the full benefit
for your donation if you donate your art to that charitable organization. But, if
you donate your art to an organization or charity that displays art on a regular
basis like a museum, then that is related-use and you can expect a higher tax
deduction for your donation.
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