Arts and Humanities Tax Reform Act of 1979

Arts and Humanities Tax Reform Act of 1979 - Amends the Internal Revenue Code to permit the executor of an estate, in calculating the value of the gross estate, to disregard that portion of the value of any copyright, or literary, musical, or artistic work created by a decedent which would have been ordinary income if such work had been sold by the decedent at its fair market value. Disqualifies property which was held by a decedent who was at any time a Government official or employee and which was created by such decedent pursuant to his official duties.

Allows an income tax deduction for the current fair market value of a copyright, a literary, musical, or artistic composition created by a taxpayer, without any reduction for appreciation.

Changes the restriction on the income tax deduction for the business use of a personal residence by providing that such residence be used to a substantial extent for business purposes, rather than exclusively used for such purposes, as is presently required.