10 Things to Know About Donating a Piano (and Getting a Tax Write-off)

In this video I go over some of the little known circumstances and realities surrounding donating a piano for a non-cash charitable contribution. Watch to find out some of the basics and little know things about this method of passing on your music making legacy to a music making non-profit.

The 10 Steps:
1. Find a donee, someone who will take your piano that is a charitable non-profit recognized by the IRS.
2. Know how much you can write off for your taxes: Up tp $5000 without appraisal, just your own research for reference at the date of the donation and a letter from the donee.
3. If it is over $5000, you will need to have a qualified appraisal.
4. The piano has to have some significant value for the appraisal process to make sense. Appraisals of this type are research projects and not inexpensive being that the appraiser is justifying to the IRS - and the American taxpayer - why the piano is worthy of a tax deduction, something a trained, professional personal property appraiser can not take lightly, given the ramifications and penalties involved for the donor and the appraiser!
5. Appraisal can not happen more than 60 days prior to the date of donation - the date the piano is valued. The donated property needs to be received or there needs to be a date set for its donation prior to appraisal being undertaken.
6. Letter from the donee that states that " .. no goods or services exchanged for this gift."
7. You need to talk with your tax preparer prior to appraisal to make sure it makes sense to proceed with appraisal being that it is a costly process based on one's tax liability.
8: Donee has to keep the piano for a minimum of 3 years.
9: The organization receiving the piano needs to have a music making function in its charter. They can not just receive it and turn around and sell it.
10. The piano needs to be in very good to excellent condition - well maintained.

www.thepianoappraiser.com

Original Video Music: "Lily Anne," by Brian Janey, Copyright 2024