Art Under $5,000

• If you plan to deduct less than $5,000 for your donated artwork, you do not need to have the art appraised. Instead, you can determine the FMV by averaging the resale costs of similar works of art in similar situations. For example, if you donate an artwork to a charity auction, your value is based on recent sales of artwork in similar auctions. Art must be the same type, such as painting or sculpture, and created by artists of similar status. For example, a little-known local artist's painting cannot be compared to an Andy Warhol or Henri Matisse canvas.
  
  

Art Worth More Than $5,000

• If your art appraises at more than $5,000 in the current market value, you must have a qualified written appraisal from a professional art appraiser. The appraiser must follow the IRS regulations section 1.170A-13(c)(3) and Notice 2006-96, 2006-46 I.R.B. 902 requirements, and must not charge a fee based on a percentage of the appraised value. The appraisal must have been within 60 days of the property donation and contain all information required by the IRS, such as the valuation method used and the appraiser's credentials. Ask potential appraisers if they are familiar with current IRS art appraisal guidelines and if they have a form that meets these guidelines, which will ensure that you have everything you need at tax time.
  
  

Art Worth More Than $20,000

• If your art appraises at more than $20,000, you must include the full qualified written appraisal form with your tax return and have a high-quality photograph of the donated item available for the IRS upon request. Take several high-resolution photographs, preferably 300 dpi at 4 inches by 5 inches or larger for digital images. Print images may be between 4 inches by 5 inches and 8 inches by 10 inch images. Photograph any significant details that add value to the art, such as the artist's signature.
  
  

Art Worth More Than $50,000

• If you plan to deduct more than $50,000 with your art donation, you need a "Statement of Value" from the IRS. Request the "Statement of Value" form well before tax time. To get the statement, you need to send a full copy of the qualified appraisal, IRS Form 8283, your IRS region and $2,500 for up to three works of art. When you do your taxes, include the "Statement of Value" as part of your paperwork to support your deductions.