The journey to obtain a qualified appraisal for donated cultural property can be bewildering. Especially if it’s your first experience gifting or the donation you’re contributing is complex to characterize as to its value.
Detail of Group of Artists in Jean-Baptiste Isabey's Studio, Louis Léopold Boilly, ca. 1798.
Since World War I, Americans have been eligible to receive a tax deduction for charitable contributions. That is if they meet certain conditions and the value is documented.
The Internal Revenue Service (IRS) defines a charitable contribution as “a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value.” Within the realm of noncash contributions, there are various kinds of properties: art, collectibles, jewelry, household goods, cars, used clothing, patents, bonds, and so on.
Overview of THIS Guide
I. Your Crew: Engage the Right Professionals
II. Before You Set Sail: Do they want it? And can you deduct?
III. Batten Down the Hatches: IRS Requirements for Value Thresholds
IV. Merrily Down the Stream: Obtaining an Appraisal
V. Anchor your Donation Boat: Form 8283
VI. Time to Dock: A Successful Voyage
‘Art’ and ‘Collectibles’ in IRS lingo are broad terms encompassing a range of personal property, including fine art, antiques, archives, manuscripts, historical objects, etc. For these objects, it’s critical to engage qualified appraisers since each category requires niche insight. Such expertise combined with reasoned analysis must be demonstrated in the resulting appraisal report.
The following guide is intended to help donors better strategize their appraisal plans for the donated cultural property for which they intend to receive an IRS tax deduction. So, let’s get our art donation deduction shipshape.*
*Forgive the nautical themes in this guide, but these metaphors may help.
Please note the information in this article is for general informational purposes only and is not considered financial advice or a legal opinion. In addition, topics may not necessarily reflect the most current tax developments. Seek the advice of legal and financial professionals before acting upon any of the information included in this article.
I. Your Crew: Engage the Right Professionals
Before you row your boat down the donation river, let’s make sure you enlist the right individuals for your crew: the Qualifying Donee, the Financial Professional, and the Qualified Appraiser. You’ll be dealing with these primary professionals to increase your chances of a successful deduction.
Qualifying Donee
The donee is the recipient of the gift. To receive a tax deduction, the donee must be considered a qualifying organization in the eyes of the IRS. Usually, it’s a 501(c)3 nonprofit organization. A great way to verify tax-exempt status is to use the Tax Exempt Organization Search available on the IRS website. Not every organization will be listed, but most are, making it a great starting point.
Since the donee is an entity, you will need to discover who is the best person to start conversing with about a possible donation. This could be a curator, director of development, head of special collections, etc. Initiate the conversation as early as possible if you seriously intend to gift. Make sure also to establish a relationship with a representative of the organization with whom you can maintain regular communication throughout the process.
Financial Professional
Whether an accountant, tax advisor, or attorney, your financial professional should know tax law regarding noncash charitable contributions. You’d be surprised how frequently the appraiser is more familiar with Form 8223 than a general accountant. However, that is not to say you shouldn’t seek professional tax advice. A suitable financial professional will provide the best fiduciary counsel.
Like appraisers, not all financial professionals are created equal. Find someone well-informed about current filing rules and proper form completion. They will aid you in finding out if you need to discuss:
Ordinary gain versus capital gain property
What can be claimed
Whether you need a qualified appraisal
Whether you need several appraisal reports for different property types or for multiple recipients
When you must file your tax return
Qualified Appraiser
A qualified appraiser is a valuation expert who develops reports that provide property value conclusions in a specific situation. Generally speaking, an appraiser answers, “What’s it worth?” And the most salient answer is always influenced by context, connoisseurship, market observations, and substantiating evidence.
Unlike real estate, there are no licenses for personal property appraisers. In the U.S., the closest form of regulation that an appraiser may opt to adhere to is the Uniform Standards of Professional Appraisal Practice (USPAP). Adopted by Congress in 1989, USPAP, as set forth by The Appraisal Foundation, is the widely recognized ethical and performance standard for the appraisal profession in the United States.
Detail from The Library, from "Poetical Sketches of Scarborough", Thomas Rowlandson, After James Green British, 1813.
Technically, anyone can claim to be a personal property appraiser. That’s why the IRS likely added “Qualified” to their description. In Part IV for Form 8283 Instructions, the IRS states that a qualified appraiser must meet the following requirements:
A1: Has either earned a recognized appraiser designation from a generally recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised,
A2: OR has met certain minimum education requirements and has 2 or more years of experience in valuing the type of property being appraised. To meet the minimum education requirements, the individual must have successfully completed professional or college-level coursework in valuing the type of property, and the education must be from:
A professional or college-level educational organization,
A generally recognized professional trade or appraiser organization that regularly offers educational programs, or
An employer is part of an employee apprenticeship or education program similar to professional or college-level courses.
B: The individual regularly prepares appraisals for which he or she is paid.
C: The appraiser declares in the appraisal that, because of his or her experience and education, he or she is qualified to make appraisals of the type of property being valued.
D: The appraiser specifies in the appraisal the appraiser’s education and experience in appraising the type of property being valued.
The IRS has also made the following comments:
E: The appraiser’s work must be in accordance with the substance and principles of the Uniform Standards of Professional Appraisal Practice (USPAP), as developed by the Appraisal Standards Board of the Appraisal Foundation.
F: Generally, the appraiser cannot have been party to the transaction of the sale of the subject property unless it was donated within two months of the date the donor acquired it and the appraised value does not exceed the acquisition price.
II. Before You Set Sail: Do they want it? And can you deduct?
The Long Gallery, Louvre, James McNeil Whistler, 1894.
One of the first questions I ask a prospective client seeking a donation appraisal is, “Has the organization accepted or agreed to accept the property?” Before contacting an appraiser, I recommend starting a conversation with the potential donee. Gauge their interest in accepting the item or collection.
The sad reality is that an institution may not be able to accept your property for a multitude of reasons: it may not be in keeping with their mission or related use, they already have an abundance of similar pieces in their collection, they’re unable to get board approval, they don’t have the facilities or staff to care for the work, etc. That’s why it’s best to start with the donee and then determine if any appraisal is needed. You may ultimately decide to gift to another organization or sell the property instead.
A few methods to donate personal property include:
Outright gifts allow you to receive a charitable deduction for tax purposes.
Fractional gifts allow you to keep partial ownership of your work and receive a charitable deduction for tax purposes. (Allowance for fractional gifts is a moving target, so check in with the latest IRS guidelines).
Bequests allow you to keep your artwork for the remainder of your life while ensuring it will have a proper home after your death and lessening the burden of estate taxes on your heirs.
Promised gifts allow you to continue to enjoy the property while also committing a future gift to the organization either during your lifetime or through a bequest.
Tip: Ordinary income property is held less than one year before contribution while captial gains property is owned the for at least one year and one day before donation.
Let’s assume that you find a qualified institution that does indeed wish to receive the property as a donation. Make sure you have a deed of gift clearly stating the terms. Physical custody is not the same as legal title, so the transfer of ownership must be put into writing. If the terms of the donation included certain stipulations or restrictions, it may impede your ability to deduct the appraised amount as a noncash charitable donation. Such a conversation is best had with a legal professional.
III. Batten Down the Hatches: IRS Requirements for Value Thresholds
Candidates for Admission to the Paris Salon, Felicien Myrbach-Rheinfeld, late 19th/early 20th century.
Before obtaining the appraisal, it’s helpful to know what’s expected for each value threshold in the eyes of the IRS. While you may have no idea what the fair market value will be, having a general idea of the requirements will prepare you to have the appropriate documentation required.
Fair Market Value of $5,000 or more
For art property determined to have a fair market value of $5,000 or more, you will have to obtain an appraisal report by a qualified appraiser to receive a tax deduction.
Fair Market Value of $20,000 or more
Did you know that the same item can have several types of appraised amounts? For appraisal with tax-related purposes, you will most likely be seeking fair market value.
If the property is valued at $20,000 or more, a copy of the entire appraisal report must be attached to your return. Also, you must be prepared to submit photographs of the subject property upon request. A high-resolution digital image is preferred, but printed color photographs are accepted if they are no smaller than 4 x 5 inches. Remember that it’s the responsibility of the taxpayer receiving the deduction (i.e., the donor) to have these images available.
Fair Market Value of $5o,000 or more
There is the possibility that the Art Advisory Panel may review the property appraised at $50,000 or more. While not every claim is evaluated, the submitted report should comply with the Panel’s guides of preferred format.
If the property is valued at $50,000 and above, you can request a Statement of Value from the IRS. This Statement is an advance review of art valuation prior to filing the return. To make the request, you must include:
Obtain and attach a qualified and signed appraisal of the property.
A $2,500 check or money order payable to the Internal Revenue Service for the user fee that applies to your request regarding one, two, or three items of art. Add $250 for each item in excess of three.
A completed Form 8283, Section B.
The location of the IRS territory that has examination responsibility for your return.
Be prepared to provide a photograph of the property upon request, preferably 8 x 10 inches in size and no smaller than 4 x 5 inches.
If your request lacks essential information, you will be notified and given 30 days to provide the missing information.
Send your request for Statement of Value to: Internal Revenue Service, Attention: Art Appraisal (C:AP:ART) , P.O. Box 27720, McPherson Station, Washington, D.C., 20038.
IV. Merrily Down the Stream: Obtaining an Appraisal
After reading ‘Your Crew’ section above, you hopefully find the qualified appraiser that you want to engage. Below are some helpful steps when working with an appraiser for a donation:
1.Reach out to the appraiser as soon as possible.
Once the property has been donated (or with specific plans to do so within the next couple of months), contact the appraiser to start the process. Don’t wait until you are in the midst of income tax filing or a few weeks before April 15th. It takes time to examine the property and develop the final report to stand up to IRS standards. Many people wait until the last minute to call appraisers, so they are often fully booked.
2. Have important dates and information ready.
These details to give at the beginning include:
Detail of Carl Ehrenswärd as Apollo, flying to inspect Sergel and Abilgaard, Johann Tobias Sergel, 1797.
Name of donor
Name of donee
Any intended users of the report (such as an accountant, attorney, or family member)
Date of donation (the date of physical transfer of custody and ownership)
Copy of the deed of gift (also sometimes referred to as the instrument of donation)
Copies of any relevant documentation (such as reported provenance, conservation/restoration reports, and authentication papers)
Manner of acquisition (such as inheritance, purchase, or gift); the appraiser needs to mention this in the report
Any deadlines the appraiser needs to know about to deliver the report
Contact information for a donee representative that the appraiser can communicate with regarding the donation
3. Arrange the time and place for the appraiser to examine the property personally.
Sometimes this occurs while the property is still in the donor’s possession, with the report developed once the donation has occurred. Other times, the appraiser will view the property at the premises of the receiving institution. Either option should be fine. It is usually influenced by the appraiser’s physical proximity to travel and see the property.
4. Sit back, relax, and wait.
The appraiser will research, analyze, and develop the report. Creating a report that can stand alone in its explanation and rationale takes time. You should always feel free to communicate with the appraiser during this period. However, the final valuation conclusion will be an objective decision the appraiser makes in their professional opinion.
5. You receive the Appraisal Report.
This document can be saved in your records, filed with your taxes, and sent to the donee or any other intended user.
6. Contact the appraiser to complete their section of IRS Form 8283.
Please note that the appraiser does not fill out the form completely; that is the responsibility of either the taxpayer or their designated financial professional. This form completion often occurs several months after receiving the report when closer to tax season.
An important note about the date of donation
The date of donation is an essential detail to the appraiser. It becomes the effective valuation date of the appraisal report. And the issue date of the appraisal report can be either (a) no more than sixty days prior to donating or (b) after the date of donation but before the due date of the tax return for the year donated (this includes any extensions).
V. Anchor your Donation Boat: Form 8283
Find Instruction for IRS From 8283 by clicking here.
You are almost there: the property has been donated, you have a deed of gift, and you have the appraisal report. All that is left is to complete Form 82823 when filing your income tax return for the calendar year that the property was donated.
There is usually a flurry of calls to appraisers in November from anxious donors requesting a qualified appraisal report ASAP. Don’t worry. The report doesn’t have to be completed within the same calendar year, but it does need to be ready when it’s time to file your taxes. For example, a collector may have donated the artwork in November 2025, had an appraisal report completed in January 2026, and then filed in March 2026 — all is well.
Below are some steps for the IRS Form 8283:
Detail of The Art Connoisseurs, Louis Léopold Boilly, 1823-1828,
1.Read the instructions and fill out either Section A or Section B of iRS Form 82823.
A form should be done for each group of similar items. If you donated to more than one donee organization, separate forms will be needed for each as well. Your tax professional can facilitate this process.
2. Send the form to the appraiser to complete Part IV.
If you use appraisals by more than one appraiser, or if two or more appraisers contribute to a single appraisal, all the appraisers must sign the appraisal and Part IV. The appraiser will either return the form to the donor or forward it to the donee upon request.
3. Send the form to donee to complete Part V.
The person acknowledging the gift must be an official authorized to sign the tax returns of the organization or a person specifically designated to sign Form 8283. When you ask the donee to fill out Part V, you should also make sure the donee provides you a contemporaneous written acknowledgment if not done so already. The donee will then return the form to the donor.
4. Complete any remaining information required in Part I.
Also, make sure to give a copy of Section B of this completed form to the donee. Let’s double-check, have you…
filled out means of acquisition?
attached a copy of the appraisal report (if required)?
obtained the appraiser’s signature for Part IV?
obtained the donee’s signature for Part V?
sent a copy of Section B to the donee?
completed the remaining information needed?
Tip: Always check online for the most recent version of Form 8283. The IRS occasionally updates it without notification.
VI. Time to Dock: A Successful Voyage
Congratulations! You have completed your journey of donating cultural property and claiming a tax deduction. It may take two to three years until you hear word back, if at all. In meantime, maintain your records regarding the donation, including a copy of the appraisal report, deed of gift or written acknowledgment from the recipient, photographs at the ready, and copy of the tax return. Hopefully, the process of gifting has been ultimately a rewarding experience. After all, contribution to our collective history of material culture is a worthwhile legacy.
About the Author: Courtney Ahlstrom Christy is the Principal Appraiser of Ahlstrom Appraisals LLC. She has worked with museums, libraries, auction houses, and galleries - all of which have provided unique opportunities to examine works ranging from the antique to the contemporary closely.
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