Lately, there have been some odd gifts to universities. This one, from Bose to MIT, is of interest to tax consultants.
UD has also been puzzling over this one, from an anonymous American to the University of Sydney. The American flew with the painting to Sydney; when there, he or she explained that the university must sell the painting and use the proceeds (probably around twenty million dollars) for scientific research.
Which is fine. Great. But why not stay home, sell the painting, and designate the money to go to Sydney? Why go to the trouble of putting the painting in Australia for a few weeks before it’s sold? I’m pretty sure it’s not being exhibited, or used for research purposes.
Odd.
April 30th, 2011 at 12:25PM
I believe if the donor sold the painting and then donated the money, she would have to pay capital gains taxes on the appreciation in value of the painting since she purchased it.
April 30th, 2011 at 2:21PM
Thanks, Marilyn. I didn’t know that.