As with gifts of long-term capital-gain securities or real estate, you are entitled to a charitable deduction for a gift of long-term capital-gain tangible personal property such as works of art, rare books, and stamp or coin collections, etc. (Note: The capital-gain tax rate on such assets is 28%.) How much you can deduct depends on the so-called standard of "related use."

Here is how the standard is applied: If the use of the contributed property is related to the exempt purposes of a charity (e.g., a painting to a museum or rare books to a library), you are entitled to a charitable income-tax deduction for the full-market value of the property.

If the use of the contributed property is unrelated to the exempt purposes of the charity (e.g., stamp collection to Southwestern University to sell and use the proceeds), you are entitled to a charitable deduction for your basis in the property.

 

Next Steps

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• I’d like to see the diagram of this gift
• I’d like to have a confidential conversation with a gift-planning
  officer about this gift plan or other options
• I’d like a personal calculation of this gift
• I’d like to request a free eBrochure on this gift

Please note: Because the federal estate tax has been repealed for 2010, there is no current estate tax in 2010 for the gifts described on this page. However, the consensus opinion among professionals is that Congress will enact an estate-tax law that may be retroactive to January 1, 2010. It is very important that you seek the advice of your estate-planning attorney to determine what changes, if any, need to be made to your existing estate plans, and then again if Congress reinstates the estate tax sometime later this year.
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