Publications
Avoiding (or at Least Deferring) Taxes on the Sale or Gifting of Art
If your client is an artist, collector, or inheritor of art, when it comes time to plan to sell or gift the art, sale at auction could result in half of the hammer price going to taxes and fees. Consider using the charitable status of organizations like the Center for Art Law or Charitable Trusts to help defer or avoid the tax.
The Art Of Managing A Collection
Management of artwork and other collectibles can be simplified by aggregating assets based on: 1.) the role that the owner plays for income tax purposes; 2.) the owner’s goals in life and at death. To manage collections effectively, we need perceptive market analysis with the ability to sort significant trends from fads, we need detailed expertise with income and estate taxes peculiar to tangible assets, and last but not least, we need to be sensitive to the feelings and emotions peculiar to the collector and heirs.
Going Beyond Preserving A Collection – The Private Operating Foundation
Many times, an artist or collector wishes to preserve their art collection by donating the collection to a museum or charity. Often the museum, university or other organization is unwilling or unable to integrate, preserve, store and display the entire collection along with the associated documents. Even if there is a financial gift to sufficiently endow the collection today, there is no certainty that the endowment will be able to fund the charity indefinitely into the future. If you are an artist or a collector wanting to preserve your collection, consider a Private Operating Foundation. This entity can be used not only to preserve a legacy but to define and shape the future.
Own A $7 Million Trading Card? Time To Do Some Income Tax Planning!
Baseball cards, and other trading cards have had a surge in popularity. Finding and selling one of these valuable cards could be a great return! When you do, also need to think about income taxes when you sell artwork or collectibles. Your income from selling tangible assets, such as trading cards, is taxed differently than income or gains from other investments. How you own a collectible will control how much income tax you will pay on the gains from a sale.
Whither Donations Of Art To Museums In 2021?
What is the future of art collections and museum donations for 2021 and beyond?
Will museums with limited capacities be willing and able to accept specific artwork or even entire collections, now owned by artists and collectors who are in their 80’s and 90’s?
“What is required is planning for a current and ongoing collaboration between artists and collectors on one hand,and museums on the other for the creation and access to a virtual as well as physical collections.”
FFI: Family Offices and Artwork: Mitigating the risks
Families that use family office services expect family office professionals to help them mitigate risks, both to investments and to concentrated illiquid holdings, such as real estate or closely-held businesses. What sometimes goes overlooked, however, is how to mitigate the risks of ownership of artworks, numismatics, jewelry, cars, and other collectibles. Risk mitigation for these treasures begins with documenting what the client has, aggregating the individual items into collections, and beginning the management of the items as a collection.