Digital BW, The Print

Very creative, Duane.  And I think the IRS would agree to that during the
inevitable audit.
I suspect they would claim (correctly) that I¹m not a pro photographer, just
a hobbyist looking to support my retirement activities.
No, I think I¹ll simplify the process, take a (small) financial hit and
avoid an audit.  And pat myself on the back for my generosity.

Harry


On 6/14/07 10:52 PM, "dlruckus" <dlruckus@...> wrote:
> 
> 
> Actually Harry. It wouldn't quite be a wash. You would be deducting
> all your production cost up front as a business expense on the sale as
> well as some proportion as overhead etc just as any other business
> would do on a merchandise sale. Since the transactions are totally
> independent, you would be able to treat the cash gift as just that and
> it would be fully deductible. So you would be able to,in a sense,
> double dip,perfectly legally. Your action would have the effect of
> causing Uncle Sam to help in the contribution. How's that for a bit of
> the butterfly wings/windstorm connection?
> 
> Regards
> Duane
> 
> --- In DigitalBlackandWhiteThePrint@yahoogroups.com
> <mailto:DigitalBlackandWhiteThePrint%40yahoogroups.com> , Harry Lockwood
> <hflockwood@...> wrote:
>> >
>> > The way around this is to sell at the materials cost, and then
> donate the
>> > proceeds.  But thatï¿1Ž2s the same as simply donating the collection and
>> > claiming the materials cost.  However, keeping the price that low will
>> > enhance the probability of sales, hence income to the arts center.
>> > 
>> > Thanks to everyone for your time and valuable advice.  As Tyler
> suggested, I
>> > should perhaps focus on generosity to the arts center, which I will do.
>> > 
>> > Harry
>> > 
>> > 
>> > On 6/13/07 6:25 PM, "Brian Ellis" <bellis60@...> wrote:
>> > 
>>> > >  
>>> > >  
>>> > >  
>>> > > 
>>> > > "Why don't you just sell images
>>> > > (indicating on the price card that the proceeds will be donated), and
>>> > > donate the proceeds back to the art center as cash and value your
>>> > > donation as the actual cash sale. That way you get the full deduction
>>> > > of the sale price, the sale validates the amount of the reduction,
>>> > > and the art center gets cash for the building fund."
>>> > > 
>>> > > Because there would be a taxable gain on the sale, which would
> offset the
>>> > > charitable contribution deduction and the whole thing would be a wash.
>>> > > 
>>> > > ----- Original Message -----
>>> > > From: "richardeskin" <richeskinphoto@...
>>> > > <mailto:richeskinphoto%40comcast.net> >
>>> > > To: <DigitalBlackandWhiteThePrint@yahoogroups.com
>>> <mailto:DigitalBlackandWhiteThePrint%40yahoogroups.com>
>>> > > <mailto:DigitalBlackandWhiteThePrint%40yahoogroups.com> >
>>> > > Sent: Wednesday, June 13, 2007 8:14 PM
>>> > > Subject: [Digital BW] Re: Valuing Prints
>>> > > 
>>> > > It isn't clear whether the images are being donated to be hung in
>>> > > their new or refurbished building, or as a cash contribution to the
>>> > > building fund.  If the latter why don't you just sell images
>>> > > (indicating on the price card that the proceeds will be donated), and
>>> > > donate the proceeds back to the art center as cash and value your
>>> > > donation as the actual cash sale. That way you get the full deduction
>>> > > of the sale price, the sale validates the amount of the reduction,
>>> > > and the art center gets cash for the building fund. Any images not
>>> > > sold can be donated after the exihibit at material value or, in
>>> > > appreciation for your donation, to be permanently exhibited in the
>>> > > new building.
>>> > > 
>>> > > --- In DigitalBlackandWhiteThePrint@yahoogroups.com
>>> <mailto:DigitalBlackandWhiteThePrint%40yahoogroups.com>
>>> > > <mailto:DigitalBlackandWhiteThePrint%40yahoogroups.com> , "hflockwood"
>>> > > <hflockwood@> wrote:
>>>>> > >> >
>>>>> > >> > In a juried process, I was selected to exhibit my (B&W) prints at a
>>> > > non-profit art center in VT
>>>>>>> > >>> >>
>>>>> > >> > Since the center is in the midst of a fund raising effort, I'm
>>> > > contemplating donating the entire
>>>>> > >> > collection to their building fund, rather than trying to sell
>>> > > them.  Obviously, this raises the
>>>>> > >> > question of how to value the collection for tax purposes..
>>>>> > >> >
>>>>> > >> > So, if I am to claim a charitable deduction, how do I value the
>>> > > donation?  The center has
>>>>> > >> > agreed that $400 per print, or $10,000 for the collection, would be
>>> > > easily justified.
>>>>> > >> >
>>>>> > >> > I'm looking for guidance from others who may have faced a similar
>>> > > situation.
>>>>> > >> >
>>>>> > >> > TIA.
>>>>> > >> >
>>>>> > >> > Harry
>>>>> > >> >
>>> > > 
>> > -- 
>> > 
>> > Harry F. Lockwood
>> > 


-- 

Harry F. Lockwood




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