Tangible Personal Property

As with gifts of securities or real estate, a donor is entitled to a charitable deduction for gifts of tangible personal property such as works of art, rare books, or stamp or coin collections. The allowable deduction for such a gift held long-term depends on the standard of "related used". 

If the use of the contributed property is related to the exempt purposes of the charitable organization (e.g., a painting to a museum), the donor is entitled to a charitable deduction for the full fair-market value of the property - subject to the 30% ceiling and carryover. If the use of the contributed property is unrelated to the exempt purposes of the charity (e.g., a stamp collection to a hospital to sell and use the proceeds), the donor is entitled to a deduction only for his or her basis in the property. 

As with gifts of securities and real estate, long-term tangible property is property held for more than 12 months. However, unlike securities and real estate, the maximum capital-gain-tax rate for tangible personal property is 28%.

Note: If the donor created the contributed asset (e.g., a painter who gives his or her own art work), the deduction is limited to the actual cost in producing the asset.  

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