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OTHER GIFTS OF REMAINDER INTERESTSand every item contained in the collection. The amount of undividedinterest acquired by the museum was computed as follows: the percentageof ownership interest, less the total amount paid by the museum,divided by $8x. Because of the space difficulties, the collection was displayedat this individual’s personal residence. During those years,the museum and the general public had access to the collection for at leastthe portion of the year as was determined by multiplying 365 days by themuseum’s undivided ownership interest. The museum had the right tohave the days of access spread evenly throughout the year, by calendarquarter. The museum also had the right, prior to acquisition of full ownershipof the collection, to removal of it to its facilities for the number ofaccess days then available to the museum. When the museum acquiredfull ownership of the collection, it had the right to the sole possession andcustody of it. The IRS ruled that, to the extent each transfer to the museumof a percentage of an undivided ownership interest was made for anamount less than the fair market value of the interest, the differencebetween the fair market value of the interest and that amount was deductibleas a charitable gift. 59• A donor enters into an agreement with a tax-exempt, charitable museumfor the purpose of establishing there an art collection to be known as the Aand B Collection (Collection). The Collection will consist of (1) specified Xand related works of art (X Works); (2) works of art by Y (Y Works), inwhich some fractional interests previously were donated to the museumby the donor and her late husband; (3) other works of art previouslydonated by the donor to the museum (Other Works); and (4) a fractionalinterest in a work by Z previously given to the museum by the donor. Infurtherance of the donor’s purpose in establishing the Collection, she hasbeen loaning art works to the museum and will be making other gifts ofart. The loaned works are accompanied by certain conditions, such as continuousdisplay of the works, periodic changes in gallery or installmentdesign if requested by the donor (Display Control Rights) subject to a“good museum practice” standard, and final editorial control over publicityconcerning the Collection. The agreement contains an arbitration deviceto ensure that unresolved questions will not lead to breach of the conditions.The museum is deemed to be in compliance with all of these gift conditionsunless and until it receives a gift condition failure notice from thedonor or, after her death, any of her children. Similar conditions apply tothe gifted works; the museum must comply with these to retain the XWorks and to receive the donor’s remaining interests in the Collection. Thegift conditions apply during the donor’s lifetime and during the periodending with the death of the last of her children; thereafter, only provisionsof the agreement concerning matters such as insurance and scholarlyaccess will remain. If a breach of the gift obligations occurs and is nottimely cured, all of the museum’s rights in the X Works terminate and the59 Priv. Ltr. Rul. 8333019. A similar transaction, without the bargain sale feature, is involved in Priv. Ltr. Rul.8535019. 512