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GENERAL INSTRUCTIONS

Line 4 – Enter your income in the immediately prior

taxable year from line 3, Form 502 or 505 or as modified

when a joint Maryland return has been filed.

Who May File

Line 5 – Multiply line 4 by 50% (.50) and enter the result

A subtraction for a contribution of artwork may be made

here.

by qualifying persons who have donated their own

artwork(s) to a Maryland museum.

Line 6 – Enter your gross income in the prior year from

the sale of your own artwork.

Qualifying Guidelines

Note: If line 5 is greater than line 6 and line 2 is greater

To qualify for the subtraction, you must derive at least

than line 3, you do not qualify for this subtraction.

50% of your income in the current or prior year from the

sale of your own artwork.

PART B

The museum that accepts your donation must be lo-

cated in Maryland and open to the general public.

Enter the name and address of the museum which

has received your artwork and answer questions 7, 8,

Required Attachments

and 9. If the answer to any of these questions is no, you

You must attach to your Maryland return a completed

may not claim this subtraction.

Form 502AC, verification by an independent appraiser of

the fair market value of the artwork, and written acceptance

PART C

from the museum.

Line 10 – Enter the fair market value of the artwork from

Taxpayers Filing Joint Maryland Returns

the appraisal.

This subtraction can only be used to reduce the tax-

able income of the qualifying taxpayer. If the total income

Line 11 – You must reduce the value of the artwork by

on page 1, line 53 of the Maryland return includes any in-

any amounts which are deductible from federal adjusted

come received by the spouse of the contributing artist, the

gross income. If your federal or state itemized deduc-

spouse’s income must be subtracted from the figure en-

tions contain any amounts which are attributable to the

tered for line 1 and line 4 of Form 502AC. Attach a sched-

donated artwork, enter those amounts on this line.

ule showing the modification.

Line 12 – Subtract line 11 from line 10 and enter the

result here.

SPECIFIC INSTRUCTIONS

Line 13 – The subtraction may not exceed 50% of your

gross income in the calendar year of the donation. You

PART A

have computed this maximum in Part A, line 2. Enter that

amount on this line.

Line 1 – Enter your current year income from line 53,

Form 502 or 505 or as modified when a joint Maryland

Line 14 – Enter the lesser of line 12 or line 13 here. This

return has been filed.

is your Maryland-only subtraction for the contribution of

artwork. Enter this amount on Form 502, line 30 or 505,

Line 2 – Multiply line 1 by 50% (.50) and enter the result.

line 22.

Line 3 – Enter your current year gross income from the

sale of your own artwork.

Note: If line 2 is less than line 3, go on to Part B. If not,

complete lines 4 through 6.

COT/RAD-010

PS-2341

Instructions For Filing Form 502ac - Subtraction For Contribution Of Artwork - Maryland Department Of Assessments And Taxation

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