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by turkishmonky 1647 days ago
With the money at stake, it would be pretty easy for both parties to tangentially set up a 501c3 whose purpose is to display gifted NFTs to the public
1 comments

I think that would be hard to get IRS approval for. Regardless, the right to display a work is its copyright, which is unrelated to NFTs anyway.

And donating intellectual property to charities with high claimed values isn't anything new. That's why in 2004 the American Jobs Creation Act required that any donated intellectual property be valued at the lesser of its cost basis and its fair market value. (See: 26 USC ยง 170(e))

So in your example, each would accrue a $10,000 income tax liability by their sale and be able to write off a $10,000 gain by their donation's basis, accomplishing nothing.