A New Tax Benefit for Art Collectors

The Tax Cuts and Jobs Act signed into law in late December 2017 created a new tax benefit that is particularly beneficial to U.S. art collecting taxpayers. This benefit comes from a program in which investors receive varying levels of special tax treatment if they invest capital gains in Qualified Opportunity Zone Funds designed to spur economic activity in economically distressed communities. The longer investors keep their investments in these funds, the greater the tax benefits they receive.

The Generosity of Artists

The founders of Miss Porter’s School, an all-girls high school located in Farmington, Connecticut, believed a stellar education can open a new world of opportunity for girls. To support this mission, a group of collectors and female artists came together to back the first-ever benefit auction of works exclusively by women. The generosity of these artists, and others who have contributed works to the sale, is inspiring under any circumstances. It is particularly notable because of the negligible tax benefits they will receive for their gifts.

Is Figurative or Abstract Art More Popular Today?

While homo sapiens were capable of abstract thought almost 100,000 years ago, it took much longer for the human mind to invent abstract painting. It wasn’t until the beginning of the 20th century that artists such as Wassily Kandinsky, Kazimir Malevich, and Hilma af Klint created abstract works with no identifiable references to the physical world.

Why Becoming a National Treasure Can Lower an Artwork’s Value

While Andy Warhol believed that “In the future everyone will be famous for fifteen minutes,” the artist retains his fame today almost thirty years after his death. Warhol is, in fact, so relevant to contemporary culture that despite being a thoroughly American artist, laws in other countries increasingly categorize works by the artist as cultural property subject to export restrictions and limitations on sale.

Rookie Mistakes Of Third-Party Guarantors

Auction house guarantees have been an essential part of the top end of the art market for decades. But with more people than ever before clamouring to be third-party guarantors, auction houses increasingly simply structure the guarantee transaction and then sell off the risk to dealers, art advisors, or collectors who typically hail from the hedge fund, private equity, and real estate industries.

From the Living Room to the Saleroom, How Prize Artworks Get to Auction

Selling a valuable work of art is a big responsibility that can push owners outside their comfort zones. There is so much money on the line, so many decisions to make, and so many questions about who to trust. How does one proceed?  Let’s look at the real-life example of siblings I’ll call Jason and Lily, who sold their mother’s collection in 2015 after she passed away. Their story illustrates the pleasure and pain of figuring out the best way to sell major works of art.

What Art Basel in Miami Beach’s Most Instagrammed Works Tell Us about the Art World Today

Critics, collectors, and curators now use Instagram to share images of art that inspires and intrigues them. Jerry Saltz, the Pulitzer-winning art critic for New York magazine, has 287,000 Instagram followers. Yusaku Maezawa, the Japanese technology entrepreneur and collector who paid $110.5 million for a Jean-Michel Basquiat painting, has over 100,000 fans.

Why Guarantees Are Actually Good For The Art Market

Collectors are sometimes terrified to sell works of art at auction—and not without reason. Maybe the object will fail to sell, becoming tainted or “burned” in the eyes of the marketplace. Maybe the estimates the consignor agrees to are too low, and the work sells for a song. But selling at auction also exposes the work to the largest number of potential buyers, increasing the odds it will sell for the best price possible.

Living Like A Rockefeller

In early May 2018, David Rockfeller's three-day estate sale brought in $833 million for charity, setting an auction record for a private collection. As part of Rockefeller's very detailed estate plan, Christie's auctioned off more than 1,500 items from the estate of Peggy and David Rockefeller