Donating Appreciated Tangible Personal Property

Normally you get a deduction for the fair market value (FMV) of property donated to a charity. However if you donate appreciated tangible personal property like artwork or jewelry you will probably be only able to deduct your cost or basis in the property. You can deduct the FMV only if the charity uses the property for its exempt purpose, for example, if a church displays the artwork on its walls. If the charity just sells the item and uses the proceeds, then it doesn't qualify for a FMV deduction as the IRS says that is an unrelated use.