§ 26-51-422 - Deductions -- Fair market value of donated artistic, literary, and musical creations. - Arkansas Statutes

26-51-422. Deductions -- Fair market value of donated artistic, literary, and musical creations.

(a) In computing net income for the purposes of the Arkansas Income Tax Act, as amended, 26-51-101 et seq., there shall be allowed as deductions in addition to all other deductions allowed by law the fair market value of donated artistic, literary, and musical creations if:

(1) The taxpayer derives at least fifty percent (50%) of his income for the current or the prior tax year from the pursuit of his art-related profession;

(2) The fair market value of the art works has been verified by an independent appraiser approved by the Department of Finance and Administration, a copy of which appraisal shall be attached to the taxpayer's state income tax return;

(3) The art works were donated to and accepted by a museum, art gallery, or nonprofit charitable organization qualified under section 501(c)(3) of the Internal Revenue Code and located in the State of Arkansas; and

(4) The deduction for donated art works does not exceed fifteen percent (15%) of the individual's gross income in the calendar year of the donation.

(b) This section shall be effective for income years beginning with income year 1983.