How Art Collectors Can Stay Out Of Tax Trouble In New York
After collecting $7.2 Million in two prominent cases, NYS Attorney General Eric Schneiderman will continue his campaign against missuse of Certificates to Purchase Art. Tips on How You Can Avoid Making the Same Mistakes
New York Comes Down on Art Collectors
by Stacy Perman After more than a decade's lull, the opaque world of buying and selling art is once again under scrutiny, particularly in New York state, where local law enforcement and tax authorities are busy investigating whether collectors have been paying their taxes, requesting sales and shipping records and sending out hefty invoices in the process.
Art and death taxes: Not so certain
Determining the fair market value of art for tax purposes continues to be a difficult task. For estate tax purposes in particular, executors face the challenge of establishing art values based on expert opinions, contemporaneous sales of comparable but not identical art, and the climate of various art markets - that of the artist, of the particular category and of the art market as a whole.