Art Donations and the Tax Code
It is sad to learn that the philanthropic conscience of wealthy art collectors is dictated by the Internal Revenue Code.
The Times is mistaken in saying that TRA86 abolished the deduction for gifts to public art museums. TRA86 did tighten much of the gimmickry that certain donors used to avoid taxes. However, in most cases, a gift of art direct to a public museum for the purpose of display in that museum, i.e. not for purpose of resale, continues to be fully deductible at its fair market value.
You may look at this proposal as a subsidy of art for public museums, or a subsidy of wealthy art patrons, who already have plenty, including tax shelters. Who is to pay for this subsidy? Those who are already pressed to shoulder the tax burden--the middle-income taxpayer.
Support public art collecting through income taxes? A bad idea, and certainly not one consistent with The Times’ liberal editorial policy.
G. RUSSELL ROYDEN
North Hollywood
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