![]() ![]() This may seem like the perfect time to sell or donate art - but before they do so, taxpayers should consider the income taxation of selling, or donating, art. Further, the code also treats you differently depending on your status as a taxpayer in relationship to the art.Īt the same time, the CARES Act has increased the limits for deductions for charitable donations from 50 percent to 100 percent against adjusted gross income. Unlike gains from selling stock or bonds, which are taxed at 20 percent plus the 3.8 net investment tax, gains from the sale of art and other collectables are taxed at 28 percent plus the 3.8 percent net investment tax. I expect to see people who either bought or inherited artwork and other collectables start considering consigning their artwork in the next few months with hopes of raising some sorely needed cash.Ĭaution is required on selling art and other collectables not only because of the market, but also because the different treatment sellers of art receive under the Tax Code from sellers of other appreciated assets. ![]() A recent article in Artprice notes that, though the art market is not immune to the economic woes of today, buyers are still willing to buy art, with Sotheby’s bringing in $2 million in sales on March 31, 2020. With the catastrophic fall in investment values due to the coronavirus pandemic, many people are looking to raise cash wherever possible. ![]()
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