Can a museum appraise art you donate to them?

A museum, university, or other 501(c)(3) that is receiving a gift of art cannot appraise that gift for the donor's income-tax deduction. The institution is a party to the transaction. IRS rules treat it as a prohibited appraiser of the property it is accepting.

What the Code actually wants

For a non-cash charitable contribution over $5,000, the return generally needs a qualified appraisal by a qualified appraiser, stating fair market value as of the donation date. The summary goes on Form 8283. The appraisal is a separate document. Publication 561 and Treasury Regulation 1.170A-17 are the rules. USPAP is the appraisal standard.

What the museum can still do

The donee can accession the work, comment on condition, and sign the donee portion of Form 8283. It cannot set the fair market value the donor claims. An independent appraiser may speak with the institution about those facts and still has to reach the number independently.

How this practice handles it

E. Linda Poras writes USPAP donation reports for gifts to museums and universities from New England and South Florida. Fees are hourly or flat, never a percentage of the claimed deduction. Reports have a 100 percent IRS acceptance record and have not been questioned by the Art Advisory Panel. Counsel still reviews the filing. This is not tax advice.