TL;DR: Historically Significant Items (HSIs) are gaining traction as one of the most effective IRS-compliant tax strategies for high-income earners. This blog explains what HSIs are, how they work, and why they’re quickly becoming a go-to option for elite tax planning.
For high-income earners, strategic tax planning isn’t just about reducing liability—it’s about doing so in a way that is secure, compliant, and aligned with broader wealth goals. That’s where Historically Significant Items (HSIs) come in.
While still relatively unknown to the general public, HSIs have become a quietly powerful tool among CPAs, RIAs, and financially sophisticated individuals who want to maximize deductions and preserve wealth—with minimal risk.
In this blog, we’ll break down exactly what HSIs are, how they qualify under IRS rules, and why more high-net-worth clients are turning to this valuable opportunity.
HSIs are physical artifacts with verifiable cultural, historical, or educational significance. These items are typically donated to qualified nonprofit institutions—such as museums, universities, or historical archives—in exchange for a charitable contribution deduction.
To qualify, the item must meet IRS criteria for charitable donation deductions, including:
Examples of HSIs might include:
The real draw of HSIs is how they fit into IRS-compliant tax strategies for high-income earners. Here’s why:
In addition, HSIs can be an appealing alternative to other more commonly known tax strategies that may have lower ceilings or require complex structuring. For example, HSIs provide a charitable deduction that is not tied to passive losses or depreciation schedules, making them an attractive option for taxpayers who already maximize their real estate or business deductions.
What kind of institutions accept HSIs?
Only qualified nonprofits that provide a public benefit and align with the item's purpose or relevance. Examples include museums, academic institutions, archives, and preservation societies.
Are the deductions guaranteed?
As with any charitable deduction, the final deduction amount depends on the appraised fair market value and IRS review. However, working with an experienced firm ensures that documentation and procedures are followed to maximize defensibility.
Do I keep the item?
No. To claim the deduction, the item must be fully donated and ownership transferred to the nonprofit institution.
What is the holding period?
Typically, the item must be held for over one year prior to donation to be eligible for the full fair market value deduction. This qualifies it as a long-term capital asset under IRS rules. B10 Capital has other options available for clients who are in need of a tax offset sooner.
It’s a fair question—especially in a world of aggressive tax schemes. But the answer is no. HSIs are fully IRS-compliant, when executed correctly. Key elements that ensure legitimacy:
That said, not all providers handle HSIs with the same level of integrity. This is why working with a reputable, experienced firm is non-negotiable.
Founded in 2017, B10 Capital is a trusted leader in strategic, IRS-compliant tax solutions for high-income individuals and their advisors. We don’t just source HSIs—we execute the entire process with security, documentation, and transparency at the core.
Our clients include seasoned CPAs, family offices, RIAs, and individuals seeking:
We’re not a volume shop. Our HSI program is designed to support long-term relationships with clients and partners who demand excellence.
HSIs offer a distinct alternative to donor-advised funds (DAFs), real estate contributions, and other forms of giving. Unlike some strategies that require long-term endowments or donor management responsibilities, HSI donations are straightforward. The item is donated, the paperwork is provided, and the deduction is claimed.
This clean structure—combined with IRS documentation and expert oversight—makes HSIs a preferred tool for busy executives, entrepreneurs, and legacy planners.
HSIs are more than a deduction. They represent a smart way to align charitable giving with real financial results—while preserving pieces of history that might otherwise disappear.
For clients who value transparency, documentation, and smart planning, HSIs are a standout strategy.
But inventory is limited—and planning season is already underway.
Contact B10 Capital today to request our HSI overview or reserve your access to upcoming allocations.
Insights into sophisticated tax benefits designed for high-net-worth individuals and businesses.
