Gift of Properties
Tangible Personal Property
This includes such items as works of art, antiques, books, gems and the like. You may, of course, give an item whether or not it has increased in value since you obtained it. Perhaps the greatest tax benefits come, however, when the donated object is what the Internal Revenue Service (IRS) considers long-term capital gain property. As we mentioned in the section on securities, this means simply that the asset has appreciated in value and you have held it for a certain length of time.
Your income tax deduction will depend upon the nature of the gift and its correlation to the Foundation’s stated, tax-exempt mission. If the Foundation’s use of the gift is related to its tax-exempt purposes, it qualifies for an immediate income tax deduction equal to its appraised value on the date of the gift. If the Foundation’s use of the gift is not related to its tax-exempt purposes, your charitable deduction is restricted to the asset’s cost basis. You may claim the deduction in the year the gift is made - up to 30 percent of your adjusted gross income (for long-term capital gain property) - and carry it over, if necessary, for up to five-years. Under certain circumstances, you can choose to qualify for the 50 percent ceiling by reducing the value of your gift to its cost basis.
Each gift item must be evaluated on an individual basis to determine whether or not it is related to the Foundation’s tax-exempt mission. For information concerning any gift you might be considering, please contact the TAPPI Foundation.
Intangible Personal Property
You may also make gifts of personal property that cannot be seen or touched. Such property is called "intangible"; and it includes copyrights, securities (discussed earlier), patents, contracts, promissory notes, royalties, trademarks, and the like. Unlike tangible property, intangible personal property does not have to be scrutinized - for income tax purposes - for its relevance to the Foundation’s tax-exempt mission.
As far as gift and estate items are concerned, tangible and intangible personal property are treated the same. An outright gift of tangible or intangible personal property is not subject to estate or gift taxes.