From: Harry Beller <MMIII

From: Harry Beller <MMIII > To: Jeffrey Epstein <[email protected]> Subject: painting to charitable foundation Date: Tue, 20 Nov 2012 22:12:41 +0000 A painting to a charitable foundation would be deductible up-to 30% of Adjusted Gross Income (AGI) (or 20% of AGI for a non operating private foundation)(only if the deduction is at FMV). If the deduction would be at cost basis than the limitation is up-to 50% of AGI. The disallowed loss can be carried forward for five years, subject to the same percentage limitations. Generally, a painting to a private foundation would generate a deduction for the lower of the cost basis or FMV. (To get the deduction at the full FMV the painting must be held by the donor for more than a year and the charitable organization must use the painting in its exempt function (i.e., related to its charitable purposes or functions). However, It appears from IRS regulations that the donor may treat the contribution as meeting the related use rule and receive the deduction at FMV if: 1)the donor establishes that the painting is not put to an unrelated use by the donee, 2) at the time of the gift, it is reasonable to anticipate that the painting would not be put to an unrelated use. EFTA00700157