David donated a painting to the Leigh Yawkey Woodson Art Museum. He bought the painting...
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David donated a painting to the Leigh Yawkey Woodson Art Museum. He bought the painting 20 years ago while on a European vacation for $6,000. David had the painting appraised by the owner of Nature's Beauty art store in Eagle River, a qualified art appraiser, who estimated its value to be $11,000. David believed the painting was worth more than $11,000, so he had it appraised by an art dealer in New York. That dealer, also a qualified art appraiser, appraised the painting at $15,000. David itemizes deductions on his annual tax return and takes a charitable contribution of $15,000. Was David justified in taking the deduction based on the higher value? What forms if any, need to be in his return? What documents documentation should he keep with his tax return, just in case of audit?
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