Collectibles to Charity?

Michael Sheehan

Physician's Money Digest, August15 2004, Volume 11, Issue 15

Note:

The maximum capital gains tax biteon stocks has been lowered to 15%, buton collectibles that have gone up invalue, it's still at 28%. That makes collectiblesa prime choice for a donation tocharity. If you give an art object valuedat $10,000, but cost you just $1000, younot only avoid the capital gains tax onthe $9000 profit, but you also get towrite off the full value as a charitablededuction. When you give goodsinstead of cash, it's up to you to figureout how much an item is worth. Foritems worth more than $5000, you mustget an appraisal from a professional andattach it to your tax return along withIRS form 8283, Noncash CharitableContributions (www.irs.gov).