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§ 10.1 VALUATION OF PROPERTYThe foregoing rules apply to outright gifts of property. Other rules apply inthe case of a charitable contribution of a partial interest in property. 86 The generalrule in this context is that the amount of the deduction for the gift of a partialinterest is the fair market value of the interest at the time of the gift. 87 Otherrules apply with respect to contributions of qualified conservation easements, 88charitable contributions of a remainder interest in real property not transferredin trust, 89 charitable contributions of remainder interests in pooled incomefunds, 90 and charitable contributions of remainder interests in charitable remaindertrusts. 91(b) Procedure for Valuation of ArtIn an effort to reduce litigation in this area, Congress in 1993 directed theDepartment of the Treasury to report on the development of a procedure underwhich prospective donors could elect to seek an advance valuation of tangiblepersonal property from the IRS before making a charitable contribution of it.This directive was contained in the conference report accompanying the OmnibusBudget Reconciliation Act of that year. The conferees included this statementin the conference report:The report should address the advisability of establishing threshold amountsfor claimed value and imposing user fees as prerequisites for seeking anagreement under the procedure, possible limitations on applying the procedureonly to items with significant artistic or cultural value, and recommendationsfor legislative action needed to implement the procedure. 92The final response to this directive came late in 1995, when the IRS issued proceduresby which individual and corporate donors and other transferors canobtain from the IRS a statement of value to be used to substantiate the fair marketvalue of art for income, estate, or gift tax purposes, including charitablegiving. 93These procedures generally apply to an item of art that has been appraisedat $50,000 or more and has been transferred as a charitable contribution forincome tax purposes, by reason of a decedent’s death, or by inter vivos (lifetime)gift. The IRS may, however, issue a statement of value for items appraised at lessthan $50,000 if (1) the request for the statement includes a request for appraisalreview for at least one item appraised at $50,000 or more, and (2) the IRS determinesthat issuance of this type of statement would be in the best interest of efficienttax administration.For this purpose, art includes paintings, sculpture, watercolors, prints, drawings,ceramics, antique furniture, decorative arts, textiles, carpets, silver, raremanuscripts, and historical memorabilia.86 See § 9.23.87 Reg. § 1.170A-7(c). The fair market value of such a partial interest must be determined in accordance withReg. § 20.2031-7. See, e.g., Priv. Ltr. Rul. 200205008.88 Reg. § 1.170A-14. See § 9.7.89 IRC § 170(f)(4); Reg. § 1.170A-12.90 Reg. § 1.170A-6(b)(2). See § 13.11.91 Reg. § 1.170A-6(b)(2). See § 12.10.92 H. Rep. No. 213, 103d Cong., 1st Sess. 561 (1993).93 Rev. Proc. 96-15, 1996-1 C.B. 185. 365