EXPER T S Peter Tabert
MEET THE Fine Art and Tax Benefits
F
ine Art plays a critical role in American lives for its beauty, financial appreciation, and potential tax benefits. The demand for galleries to provide art has dramatically increased.
An art collection needs to be kept in good condition, which may include framing, reframing, lighting, air conditioning, humidity controls, cleaning and other maintenance, security, and insurance. The art investor or collector may travel and incur other buying expenses and fees that increase cost of ownership.
30
This article will briefly bring to light some income tax issues pertaining to deductibility of expenses arising from maintaining a collection, and taxability of gains and losses realized on the sale of artwork.
All the above issues may be differently applied if you are classified as a dealer, an investor, or a collector. The presentation will concentrate on investor tax free exchange.
A person investing in art has an objective of making a profit. In determining whether a
OFF THE EASEL MAGAZINE – FALL 2015
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36