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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15610
Experience:  15years with H & R Block. Divisional leader, Instructor
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I loaned an historic artifact to a museum (at the time it was

Customer Question

I loaned an historic artifact to a museum (at the time it was on loan it was worth aprox 30,000) I paid 7000 for it at auction ...long story short the museum displayed the object improperly and it was irreparably damaged...the museum was found negligent in displaying the object and the insurance company denied two requests for payment ...I was able to recoup 4000 at auction...can I claim a loss or would it be possible for the museum to issue me a donation claim of 3000 for their use of my object...I can not sue the museum it is a city owned museum
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.
HelloIf you purchased for $7k and sold for $4k then that is a loss. You need to report the sale on form 8949 and Schedule D.If you itemize your deductions you can claim the as a casualty loss on form 4684. You would list the basis and the the damage loss of $3000.A loan of artwork will not produce a charitable deduction, since there is no completed transfer.You are required to click a positive rating if I am to be credited with the response.You have to actively click on a rating and click submit. Smiley Faces or Stars.
Expert:  Robin D. replied 1 year ago.
Checking to see if you responded