Charitable Contributions
Many donations and charitable contributions to public institutions, museums and other organizations with a 501(c)(3) designation are tax deductible. However, in order to properly claim the deduction one must have a formal appraisal of the Fair Market Value of the item, in accordance with USPAP.

This is a different value than the purchase price of the item or the replacement value of the item, which is the amount at which the item should be insured. The Fair Market Value of the item is the value which reflects what the item might sell for on the open market, and is not what you might see a dealer asking for the item in a gallery.

The IRS is very well versed in the requirements of the appraisal profession and, in particular, of USPAP and it requires that all appraisals which are submitted adhere to the strict guidelines as set forth therein. For this reason it is especially important to have a professional appraiser, and not a dealer or some other fine art professional, provide your appraisal report when claiming a charitable contribution deduction.