DuPont Gives Hotel Art to 3 Area Museums, United Way

 

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DuPont gives hotel art to 3 area museums, United Way

By donating the paintings, DuPont will save millions of dollars in taxes. A donation spares the company from paying corporate income tax on a sale’s proceeds and also provides DuPont with deductible donations to charity. DuPont, a $66 billion company, would have had a sale taxed at the United States’ top corporate tax rate of 35 percent. Because the paintings don’t generate any income for DuPont, donating the collection was a smart move, according to Jordon Rosen, a Wilmington accountant who specializes in business taxes at Belfint Lyons & Shuman.

“Basically, they are saving on the capital gains tax, and they are getting fair market value for their deduction,” Rosen said.

Because the United Way and the museums are tax-exempt organizations, they don’t have to worry about taxes on sales, either.

“It’s win-win for the organizations,” Rosen said.

 

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