Drawing Up a Plan: Tax Planning for Artists and Art Collectors
Sullivan & Worcester hosted a Tax Briefings seminar, "Drawing Up a Plan: Tax Planning for Artists and Art Collectors," on November 18, 2015, led by Joseph B. Darby III, Richard J. Marks from US Trust, Bank of America Private Wealth Management and Susan Black from Boston Private Wealth LLC.
This seminar discussed the unique tax and estate planning challenges that arise for people involved in the art world – both as art creators and as art collectors (and often both). The program addressed the life cycle of art ownership, including the creation or acquisition stage, sales and use tax issues that arise when art is bought and sold, state and local property tax assessments when art is held for personal or investment uses, gift-tax planning for individuals who intend to transfer art (and claim charitable contribution deductions) during their lifetimes, and estate-tax planning for individuals with substantial art collections who intend to pass the collections on intact to family members and/or to museums. The program also explained the intricate and often fascinating issues that must be addressed in order to structure an art sale as a "like-kind exchange" so that "trading up" in an art collection can be done on a tax-free basis.