Featured Book Donation Issue

Earlier this month, I posted about a donation my father made a couple of years ago to a university library, a first edition of Vasari's Lives, dating I believe from 1550.

I also mentioned that it has fallen upon me to prepare several years of unfiled tax returns on his behalf (sadly, he passed away last Saturday from the effects of brain cancer). I inquired about valuation of the book and was given a very helpful link and other very helpful information, including the importance of getting a letter from the rare book department of the library, documenting the donation.

The new development is that the contact at the rare book department, who spoke with my sister, told her that my father had declined to sign the form that would have been needed in order for the library to issue the letter that would allow the donation to be claimed at full market value for purposes of filing returns (in the U.S.). This person, who said that she also happens to be a tax attorney, says that the window of opportunity has closed and at this point, the donation could only be claimed in the amount of $500.

I realize that this might not be the appropriate forum for asking whether anyone knowledgeable in these matters knows that what my sister was told is accurate but I thought I would post here in the event that anyone could point me in the direction of where I might be making inquiries (e.g., the most appropriate forums for posting this question).

Thank you for your interest!

 

DB, please accept my condolences on the loss of your father. I am so very sorry.

I wish I could help with the tax issue, but I'm afraid it's out of my realm of knowledge. I hope someone else will have some insight for you.

 

I'm sorry for your father's passing

Do you have proof that your father donated this particular book?
That is what you need.

What they said about the value and only declaring $500 doesn't sit right with me.
What did you determine the book was worth?

I'm thinking she was protecting the library. If the book is worth a huge amount of money, then the library has to declare that as a gift.

I think your sister wasn't given good info.
You need proof that he donated the book, to whom, and when.

The IRS has good publications telling you what you need.
Here is one on valuation of donated items.
https://www.irs.gov/publications/p561

The left hand column is the table of contents for the publication.

 

https://www.nolo.com/legal-encyclopedia/how-value-noncash-charitable-contributions.html

 

Condolences to you & your family, DB. We have some sense of the person your father was from the beautiful and interesting things he brought into his life.

I'm not aware of a donor having to sign anything in order to receive an acknowledgement from a tax exempt organization for any kind of donation. The acknowledgement has to be contemporaneous, provided by the time the return claiming a deduction for the donation is due to be filed, and has to describe the donation accurately, but does not have to state a monetary value when the donation is of goods or services. It needs to give the monetary value of anything received by the donor in return.

I can only think there was some kind of release required if you needed them to provide an actual appraisal with estimated monetary value. If you are executor/trustee of the estate, I do not know why you could not sign such a document. What exactly did the window that is now closed open on to? Are they saying they now no longer know who gave it to them?

 

That sounds ... odd. Just odd.

 

Thank you, everyone, for your sympathy and sharing of information.

In response to your questions: The university library rare books spokesperson is acknowledging the fact that this book was donated by my father. They had a small ceremony to commemorate the donation and she said she will provide a letter stating that the book was donated by my father.

At the same time, she said that on the tax returns, we would only be entitled to a $500 valuation, even though a copy of the same book in similar condition was sold at a Sotheby's auction in 2014 for the equivalent of US$40,000 (the money was apparently paid in British pounds).

She said that the reason for this was that my father declined to complete a simple form they offered him, which would have changed the verbiage of the letter of acknowledgement for the donation, and that the window for changing this has closed. She said that, as a tax attorney, she could state this authoritatively.

The reason I'm taking the time to look into this is the possibility that a valuation in the range of what the same book sold for through Sotheby's may affect the amount of taxes owed by the estate. (Sorry if that's obvious. I just wanted to state it explicitly.)

 

I did not try to parse all of this, but think you should look at the instructions for IRS Form 8283. The woman at the library probably knows what she is talking about, but can't hurt to do more checking. Publication 526 for the appropriate year is also worth looking at. This is the 2017 version. For more about determining fair market value, (FMV), Publication 561. These may not be for the year you need, but will get you started.

 

I am very sorry for your loss. Even when you know the end is near, it is always hard when someone passes.
I am in Europe, so I have nothing to add to what has already been said about the taxes. I just wish you luck, and the strength to deal with everything.

 

@DBinSV , I'm sorry for your loss. It's difficult to deal with all of these legal sorts of things at a time like this... even if his death was expected.

Wish I knew something about this, but I don't. Do you know of an attorney you could consult who would be knowledgeable about this sort of thing? I'm sure the woman from the library knows, but I think you should check independently to make sure and to better understand what these forms are.

 

I am sorry for your loss too.

 

Sorry for your loss. Wish I could help but everything I know has already been said, I hope you get it all figured out.

 

So sorry to hear of your Dad's passing. Re: Book/Donation - An attorney is not a rare book appraiser. Attorney's quite often think their interpretation of words is the only valid interpretation, that is why they have other attorney's "oppose" them in court.
I have donated automobiles in the past. I got a letter acknowledging the donation. They didn't value the donation - that is based on "fair market value". (Now I am wondering if the book is still in the collection...sorry, I have spent too much time around attorney's and people who need them to navigate life.)

 

Welcome to the forum @Old Poet Girl.

 

Very sensible post. Welcome to Antiquers, @Old Poet Girl !

 

This is good. You have proof to support your claim.



According to the NOLO page anything over $5000. must have a written appraisal. You no longer have the book, and the university says they won't give you an appraisal because too much time has passed?

I don't understand why she is limiting you to $500. I would think you could claim at least $4995 without a formal appraisal. I still think it has something to do with what they have to declare as donations. Maybe they only declared a $500. donation

https://www.nolo.com/legal-encyclopedia/irs-recordkeeping-rules-property-donations.html

Do you have a good accountant/CPA? What do they say?

Wonder if you should contact the head of the university.

 

I've been thinking about your situation.

If you don't already have an estate lawyer, you should hire one. That person will put you in touch with a CPA qualified to handle all the tax returns as well as the final tax return.

All the costs of the lawyer and accountant will be born by the estate when it is finally settled. Leaving you, your sister and any other relatives without the responsibility of paying estate taxes on your own 1040s. The estate would have to be worth more than $11,180,000. If it is worth that much you really need expert help and not opinions from amateur lay people like myself.

"Most relatively simple estates (cash, publicly traded securities, small amounts of other easily valued assets, and no special deductions or elections, or jointly held property) do not require the filing of an estate tax return. A filing is required for estates with combined gross assets and prior taxable gifts exceeding $1,500,000 in 2004 - 2005; $2,000,000 in 2006 - 2008; $3,500,000 for decedents dying in 2009; and $5,000,000 or more for decedent's dying in 2010 and 2011 (note: there are special rules for decedents dying in 2010); $5,120,000 in 2012, $5,250,000 in 2013, $5,340,000 in 2014, $5,430,000 in 2015, $5,450,000 in 2016, $5,490,000 in 2017, and $11,180,000 in 2018."

https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax

 

I'm very sorry to hear of the passing of your father. It sounds like you're trying to do income tax returns.

I can't really offer any specific help. My husband passed last year and in addition I also had a division and transfer of family land so for the first time ever, I had a CPA do my taxes this year. It was very helpful.

I would highly recommend an estate attorney to help settle the estate and to answer questions. Mine were an incredible help to me.

So that's what I'd say, CPA for income tax and estate attorney for estate questions. I don't regret seeking their help for a minute.

 

it makes me sad and angry at the same time when I hear such stuff. to think that the deceased closed his eyes by thinking to have made a generous donation to an institution that he cared about - and then this ! what a shame !