[ale] IRS, Art, RIAA & MPAA

[Sean Kilpatrick]

On Monday 01 May 2006 10:38, Steve Hamlin wrote:
| Reason: ?likelihood of abuse. ?If the IRS allowed any artist to deduct the
| "estimated street value of the work", then the Service would quickly start
| seeing huge charitable dedcutions for art 'donated' to a charity. ?Same
| for donated time (programming or otherwise) - what is the appropriate
| hourly rate? ?Hmm, I think I'm worth $500 an hour, so my volunteering on
| Saturday monring is worth a $2000 deduction. ?Excellent !!

There is a way around this mess for artists.

If I, as a professional photographer, donate a framed "artsy" photograph
to a non-profit and they turn around and sell it at a "fund-raising"
auction, then an "arm-length transaction" has determined the "value" of
the "work of art."  The "not-for-profit" -- 501.C3 organization in the
IRS code -- then sends me a letter thanking me for my donation that 
raised $XXX.00.  Now I have a deductible contribution. I didn't set the
value and the not-for-profit organization didn't set the value; it was
set at auction by "willing buyers."

/RANT/
Its a royal PITA forced upon us all by the IRS and tax cheats.
Ultimately, of course, all of this is foisted upon us by Congress, which
is unwilling to create a fair and SIMPLE tax code, because _that_ would
discriminate against all the special interest groups -- especially the
the wealthy ones that finance re-election campaigns.
/END RANT/

Sean

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