Artists Tax Equity Act of 1979

Artists Tax Equity Act of 1979 - Amends the Internal Revenue Code to allow an estate tax credit equal to the fair market value of literary, musical, or artistic properties transferred, without restriction, by the estate of the decedent whose personal efforts created them, to Federal museums and art galleries for public exhibition. Requires the recipient of such properties to sign a written statement that such properties have significant artistic value and that they will be placed on public exhibition.

Allows a nonrefundable income tax credit equal to 30 percent of the fair market value of a literary, musical, or artistic composition created by the personal efforts of the taxpayer and contributed by such taxpayer to a tax-exempt charitable or educational organization. Limits the amount of such credit to the greater of $2,500 or 50 percent of the taxpayer's income tax liability for the taxable year. Limits the dollar amount of contributions to $35,000. Requires certification that such compositions possess significant artistic value. Disallows the credit for the contribution of a letter, memorandum, or similar property which was written by or for the taxpayer while such taxpayer held public office.

Extends from five to ten years the period in which an artist must show that he has engaged in the production of artistic works for a profit in two years during such period in order to claim income tax deductions for losses related to the production of such works.

Restores capital gains treatment of the gain realized from the sale of inherited artwork.