An Artistic Way to Pay Your Taxes

Oil,Painting,-,Sailing,Boat

Many wealthy individuals enjoy collecting things, including artwork. While artwork can be a source of income for some, as well as solely a collectible for others, it can’t be used it to pay your taxes. Well, at least not in the United States, anyways. However, there are some countries in which artwork is a completely acceptable way to pay your taxes.

In the United Kingdom, for example, between the years 2009 and 2013 alone, taxpayers used £124.5 million worth of art to reduce their tax bill. UK citizens can even get the full fair market value off their art without having to sale it. Plus they don’t have to pay taxes on any gain. The program used to be mainly for estate taxes, but since 2013 residents of the UK can use it to settle their unpaid taxes.

Meantime, in Mexico, the art-for-taxes program is even sweeter, especially for artists, who can actually donate their works instead of paying taxes. The program allows artists to donate the same amount of artwork as the value of the pieces they sell each year. It not only encourages talented artists to continue creating, but it has also helped the country accumulate a large and valuable collection of some the country’s most recognized artists.

Although this program seems to work well in these countries there is no such program in the U.S. However, for professional artists in the U.S. there are many tax deductions available, which can help reduce their tax bill. So although artists and collectors might not be able to pay the IRS in paintings and sculptors, with the right tax planning help from GROCO they can still come out ahead.

Posted in ,
Why Are These Wealthy Taxpayers Angry About Taxes?

Why Are These Wealthy Taxpayers Angry About Taxes?

Why Are These Wealthy Taxpayers Angry About Taxes? By Alan Olsen In most cases, when you hear about someone being angry about taxes, you automatically assume they think they’re paying too much. Nearly all taxpayers think they pay too much, no matter their income level. But for the most part, wealthy taxpayers tend to be…

Last-Minute Tax Tips for High Net Worth Taxpayers

Last-Minute Tax Tips for High Net Worth Taxpayers

Last-Minute Tax Tips for High Net Worth Taxpayers If you’re one of those taxpayers that like to wait till April to file his or her taxes, then there are still some new things you should know about before you file. That’s especially true if you’re a high net worth individual or an investor. By now,…

What Should You Do if You Can’t Pay Your Tax Bill on Time?

What Should You Do if You Can’t Pay Your Tax Bill on Time?

What Should You Do if You Can’t Pay Your Tax Bill on Time? The 2019 tax season is in full swing and it’s already come with several changes and surprises. One of the biggest surprises is the number of taxpayers that are either getting a much smaller refund, or not getting a refund period. However,…

Could This Year’s Tax Refund Be Bigger Than Last Year’s?

Could This Year’s Tax Refund Be Bigger Than Last Year’s?

Could This Year’s Tax Refund Be Bigger Than Last Year’s? If you’ve heard anything about the 2019 tax season, it’s probably that refund amounts are way down. That storyline has made a lot of news. And opponents of the Tax Cut and Jobs Act (TCJA) have definitely used it as “proof” that the changes were…