When you are the artist, you can only claim the cost basis as the gift. Thus, only the value of the materials. Your time is not a deductable gift. When you give an item made by someone else you can deduct the FMV. IRS form 8283.[/quote]
FMV does not deal with time. FMV means "An exchange price that a willing and well-informed buyer and seller would reach through negotiation under current market conditions."
If you are a music artist, you cannot deduct the time you donate for a benefit concert. When you donate a quilt, you cannot say, "I spent 60 hours on this so I can tack on another $240 for my time", but you CAN deduct what the quilt is worth if sold at "FMV". It doesn't matter who created the item, if FMV is $500, you can deduct that amount, but not add on anything for time.