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Are charities really going to provide receipts that their donated NF-what?s are worth $180,000? Is the market liquid enough for them to resell them? If it is, t
by mminer237 5y ago
Are charities really going to provide receipts that their donated NF-what?s are worth $180,000? Is the market liquid enough for them to resell them? If it is, then it's no different than if A & B resold them and donated the money. If not, why would charities go along with it?
It's easy to find a small museum to donate small amounts of artwork to at an inflated value. But what charity wants NFTs?
- turkishmonky 5y agoWith the money at stake, it would be pretty easy for both parties to tangentially set up a 501c3 whose purpose is to display gifted NFTs to the public
- mminer237 5y agoI think that would be hard to get IRS approval for. Regardless, the right to display a work is its copyright, which is unrelated to NFTs anyway. And donating intellectual property to charities with high claimed values isn't anything new. That's why in 2004 the American Jobs Creation Act required that any donated intellectual property be valued at the lesser of its cost basis and its fair market value. (See: 26 USC § 170(e)) So in your example, each would accrue a $10,000 income tax liability by their sale and be able to write off a $10,000 gain by their donation's basis, accomplishing nothing.
- negroni 5y ago> But what charity wants NFTs? I attended an event last night in a museum where over $150k was raised for local Charities by auctioning off NFT Art. It will probably become more common than one might imagine.