Bell wrote: If the buyers make out the checks to the charity, she would not have to report the income and come out better.
Frankly wrote:is she merely saving the effort of writing a donation check to the charity post sale and attempting to avoid recognizing income from the sale of her work?
For purposes of this subtitle, the term “capital asset” means property held by the taxpayer ... but does not include—
...(3) a patent, invention, model or design (whether or not patented), a secret formula or process, a copyright, a literary, musical, or artistic composition, a letter or memorandum, or similar property, held by a taxpayer whose personal efforts created such property... [emphases added]
Harry Boscoe wrote:This might have repercussions in the amount of a charitable deduction that the artist/owner/taxpayer/donor might be able to claim under IRC Section 170.
Chay wrote:In order for the answer to be "no" here, I would say she needs receive a letter from the organization documenting her gift and the arrangement they have in place whereby she will sell the paintings as an agent for the organization.
Tax-wise, this would be the best solution unless the taxpayer needs to raise her AGI for some unrelated reason.
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