Tax Time for Artists: Give Good Deeds Their Due

DownToTheWireDesigns

Story by DownToTheWireDesigns

Published on Apr 03, 2009 in Read

Photo by spokespeople

Chuck from DownToTheWireDesigns checked in with us after his New Year’s Resolution to donate a piece of his jewelry every week for the entire year. Committing to a project like that is quite an undertaking for any artist, and Chuck wants to share an important message about a new piece of legislation that would  improve the way artists are compensated for their charitable donations. ‘Tis tax season after all…  

There is currently a proposed change to the tax code pending in the U.S. House of Representatives that could have a profound effect on all U.S. artists if passed.  The proposal, H.R. 1126, also known as the Artist-Museum Partnership Act of 2009, seeks to address the issue of artists donating their work to charitable groups and institutions.  As the law currently stands, any person in the arts donating their art work is only allowed to deduct the cost of the materials involved in producing the art work.  This resolution seeks to change that situation and would allow for a fair market value deduction.

You can follow the progress of the resolution at this site, and you can locate and email your representative through this site.

I would encourage everyone to contact their elected representatives in support of this resolution so that it does not languish without getting a floor vote.  Getting this passed is a basic issue of fairness.  The tax code as it is now written discourages charitable giving in these hard times and it undervalues the work of artists.

To illustrate the absurdity of the current law, consider the following: If I donate a piece that I could normally sell for $100 but that only costs me $10 in materials, I can only deduct that $10 on my tax return.  My time, design abilities, and technical skills are not valued at all in the tax code as it now exists.  However, if someone else buys that same piece of work for the $100 that I normally charge, they could then donate it to charity and deduct the full $100 market value irrespective of the cost of the materials used in its creation.  This is simply not fair, and it hurts both the artists and the groups which rely on those artists in their fundraising efforts.

Again, if you feel that the current law is unfair, please take a moment to send a quick email to your elected representatives encouraging them to support the resolution.  All you need to do is write them a single line saying, “I am writing to encourage you to support H.R. 1126, the Artist-Museum Partnership Act of 2009.”  If you feel inspired you can elaborate by telling your elected official how the current law affects you, and how the change would be an improvement.  Try to keep it short and be respectful.

 

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  • hanginmoon

    hanginmoon says:

    Umm.. I guess big brother needs some donation.

    3 years ago

  • SarahBeeCreations
  • FancifulForm

    FancifulForm says:

    LOL "Marking" :op

    3 years ago

  • thepairabirds

    thepairabirds says:

    Interesting. Thanks for letting us now about this, Down to the Wire.

    3 years ago

  • JenGillette

    JenGillette says:

    I was joyful at this news, but my boyfriend quickly pointed out that people could artificially inflate the value of "artwork" and "donate" it just to create a nice deduction for themselves. It would be sad if this step forward for artist became yet another tax loophole for the super wealthy.

    3 years ago

  • JenGillette

    JenGillette says:

    *artists, plural (sorry!)

    3 years ago

  • PeppermintDaydreams

    PeppermintDaydreams says:

    ooo, hope it passes!

    3 years ago

  • DownToTheWireDesigns

    DownToTheWireDesigns says:

    I understand that concern JenGillette, but the resolution does require the artwork to be valued in specific ways. I haven't looked into all the details of that, but I would think that having the same or similar items selling either here or in a gallery somewhere would be an adequate gauge of market value. The situation as it now stands is blatantly unfair-- I have a friend who sells polymer micro mosaics in prestigious jewelry galleries around the country for thousands of dollars each. Some of these take her 100+ hours to complete and yet if she wanted to donate one to a charitable cause, she could only deduct the cost of the Fimo which is often worth no more than $10.

    3 years ago

  • PhineasandLou

    PhineasandLou says:

    Thanks for the info!

    3 years ago

  • satellitedaisy

    satellitedaisy says:

    I always appreciate good info! Thanks

    3 years ago

  • dogties

    dogties says:

    How sad...

    3 years ago

  • DownToTheWireDesigns

    DownToTheWireDesigns says:

    The bigger point is that this issue applies to artists-- producers of art-- not collectors. Presumably, it applies to any artist regardless of their stature. Once the artwork is purchased, it becomes a commodity and then can be donated at whatever value was paid. I have no problem with that-- it encourages people to support the arts by collecting it and supporting museums by donating their collections. What needs fixed is the law as it applies to artist themselves.

    3 years ago

  • monamivie

    monamivie says:

    Wow, thanks for including my bookbags for Mali in the photos! Really nice!

    3 years ago

  • bittersweetdesign

    bittersweetdesign says:

    Did it! Sent off the notice to my rep just a minute ago. This definitely needs to be passed!

    3 years ago

  • dragonhouseofyuen

    dragonhouseofyuen says:

    so good to see that you have Jackie's work here - Faces of rescue Series with Reggie as a member of efa, I donate my art work to benefit rescues and many, many other efa members donate up to 100% proceeds from their artwork to benefit the animals - worldwide. Irrespective of any individual countries laws I hope that it will not put people off donating to very needy and worthy causes.

    3 years ago

  • shouldhavezagged

    shouldhavezagged says:

    Just sent a note to the Honorable Andre Carson of Indiana's 7th Congressional District. :-)

    3 years ago

  • sucree

    sucree says:

    This would certainly be a positive change for artists! Thanks for this story.

    3 years ago

  • zombuki

    zombuki says:

    I think it's great, I wonder if it would only apply to donations to charities, since I do giveaways monthly, and a biiig one annually.

    3 years ago

  • ClaudiaLord

    ClaudiaLord says:

    Thanks for letting us know about this!

    3 years ago

  • Signs

    Signs says:

    Sounds like a great idea once you figure out how to put a value to art that isn't already a commodity.

    3 years ago

  • EpicBones

    EpicBones says:

    woah, crazy. this is good info

    3 years ago

  • lpdesigns

    lpdesigns says:

    thanks for the info, chuck! *off to send an email or two*

    3 years ago

  • isewcute

    isewcute says:

    would be great if it passed...because a work of art is so much more valuable than just the materials that go into a piece...my time of casting, sanding, polishing should be considered! :o)

    3 years ago

  • Lunatiger

    Lunatiger says:

    That's pretty unfair! It takes work to make those pieces! It just get slap together in 1 minute! Outrageous.

    3 years ago

  • jenmaestre

    jenmaestre says:

    Thanks so much for this article. I've been donating art for years, but only small pieces, because of the unfair deduction.

    3 years ago

  • DownToTheWireDesigns

    DownToTheWireDesigns says:

    Jen, your work is a perfect example of why this change needs to be made. It is obvious from looking at your pieces that they take a lot of time, skill, and creativity. That is what people are paying for when they purchase your work-- not just the pencils. Yet that is all that the tax code currently says you can deduct-- the cost of the pencils. If you donated one of your sculptures to charity and then also donated just the materials used to make the sculpture as a second donation, according to the government both would be worth the same deduction. Obviously, they are not going to get the same response from those attending the auction. The reason for that-- your talent-- is precisely what the tax code does not consider.

    3 years ago

  • MeadowbelleMarket

    MeadowbelleMarket says:

    Thanks for the reminder! I just took a moment to write my representative in MO. This is definitely important. I'm sure I'm not the only artist who has made at least half a dozen contributions to organizations in the past year.

    3 years ago

  • dogs4deb

    dogs4deb says:

    thank you for the information on this very important tax issue. its hard enough being an artist!

    3 years ago

  • CutieDynamite

    CutieDynamite says:

    Thanks for the info, interesting!

    3 years ago

  • BlueTerracotta

    BlueTerracotta says:

    This is good news for American artists. Artistic effort and work has been undervalued for a long time...it seems we're just "having a good time" when we make art!

    3 years ago

  • fineartstoneware

    fineartstoneware says:

    Thanks for the important info!

    3 years ago

  • vivilian

    vivilian says:

    very pretty creation! ☆╭┐┌╮☆°．﹒ ╭┘└┘└╮∴°☆° └┐．．┌┘─╮∴° ╭┴──┤∴∴├╮ │ｏ　ｏ│　　│●° ╰┬──╯　　│ ∴°﹒ ☆ \ˍ|ˍ/ˍˍˍ/∴☆． ☆╭┐┌╮☆°．﹒

    3 years ago

  • BayMoonDesign

    BayMoonDesign says:

    If you want to put a smile on your face, take a look at laughinghyena's shop. So cool and you have stuff for guys too. Everyone needs some humor when contemplating taxes.

    3 years ago

  • littlepinkpebble

    littlepinkpebble says:

    wow~!! that'll be great if approved

    3 years ago

  • LeftHandHats

    LeftHandHats says:

    I just sent an e-mail to my Congressman. I have already spoked with two charities about donating things for silent auctions at their events this year and, this passing would certainly make it easier to do so more frequently!

    3 years ago

  • JenGillette

    JenGillette says:

    Oh, don't worry, guys, I am definitely in full support of this move. I think just being able to claim materials is grossly unfair and pretty much supposes that an artist doesn't deserve an hourly wage, which is ridiculous. I was just making the point that as with most tax laws, there is room for abuse. It's a sad situation, but I care a lot more about the benefit to us artists than the possibility of tax sheltering.

    3 years ago

  • StudioCherie

    StudioCherie says:

    Thank you for bringing this to our attention.

    3 years ago

  • odiliafu

    odiliafu says:

    Thanks for the info!

    3 years ago

  • Iammie

    Iammie says:

    Thanks.

    3 years ago

  • cozycottagecreations

    cozycottagecreations says:

    Well, that would be good news! Thanks for passing on the info. It's great to hear that the government is working towards something that SUPPORTS artists for a change.

    3 years ago

  • LadyLuLus

    LadyLuLus says:

    Good article www.ladylulus.etsy.com

    3 years ago

  • THEZEBRAFROG

    THEZEBRAFROG says:

    Very interesting.

    3 years ago

  • scavengerhunt

    scavengerhunt says:

    Nice to know these things thanks

    3 years ago

  • lavalleygirly

    lavalleygirly says:

    Very interesting..thank you for putting the spotlight on this.

    3 years ago

  • compassionmalas

    compassionmalas says:

    How great is Etsy, to have such important items about the politics affecting us artists! I just sent the email. Thanks for the information.

    3 years ago

  • Tina669

    Tina669 says:

    Thank you for bringing this to our attention.

    2 years ago