Lee Rosenbaum quotes from today's press release announcing the new fractional gift legislation:
Pension Protection Act of 2006
1. Requires that all fractional gifts be completed within 10 years of the initial donation.
2. Forces donors to value their fractional gifts at the lowest appraisal value of the piece at the time of the donation of the original fraction.
3. Applies estate and gift tax rules to fractional giving.
4. Requires that museums have "substantial physical possession of the property" during the donation process.
Promotion of Artistic Giving Act of 2007
1. Requires that all fractional gifts be completed within 9 months of the death of the donor.
2. Allows for fair-market value deduction for subsequent fractional donations, but prevents inflated appraisals by requiring review of donated fractions valued at $1 million to be reviewed by the Art Advisory Panel of the IRS.
3. Repeals PPA estate and gift tax provisions relating to fractional giving.
4. Retains the PPA requirement that museums have "substantial physical possession of the property" during the donation process.