How To Avoid Taxes on Income From Selling Expensive Art?
Income tax on sale of Paintings
Are you a collector of rare and expensive art? Are you tired of getting hit with high tax bills every time you sell one of your pieces? Anyone who deals with extremely value collectibles like artwork knows how expensive these works can be.
Taxes for artists
At the same time, anyone who tries to profit from his or her collection also knows how much the IRS likes to get its fair share after the sale. However, there is a loophole that can be very valuable to those who buy and sell valuable artwork.
Buying art to avoid taxes
They are known as 1031 exchanges and this is how they work. Many wealthy art collectors can, and do, save millions in taxes by essentially rolling over their profits from selling their collection pieces into buying more art. As the price of high-end artwork continues to rise, many collectors are taking advantage of this opportunity.
Instead of paying millions of taxes on their proceeds, collectors turn around and put the money towards adding to their collection.
While some lawmakers frown on the practice, it is perfectly legal and allows art investors to defer taxes on their income from selling art. Many art collectors have found it to be an excellent way to extend the value of their art holdings, while at the same time avoiding letting millions get sucked away by the government.
Watch this full video at The American Dreams Show: “Art as an Investment”
If you own valuable artwork and you want to avoid paying the high tax bills that come with selling that art, then please contact GROCO today for advise on how to do this. Don’t pay the IRS more than you have to. Call us at 1-877-CPA-2006 or connect with us online by clicking here.
We hope you found this article about “How To Avoid Taxes on Income From Selling Expensive Art?” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business. Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most. They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges. Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Top Self Employed Tax Questions
Top Self Employed Tax Questions What is Business Turnover? Sales turnover is the total amount of income a business earns before deducting business expenses. Turnover includes receipts of any kind for goods sold or work done such as commission, tips, payments in kind, fees and insurance proceeds. Include sales turnover in your financial accounts at…
2010 Tax Relief Act creates a 100% writeoff for heavy SUVs used entirely for business: HISTORY REPEATS ITSELF
[vc_row][vc_column][vc_column_text]OLD RULE: A calendar year taxpayer bought a $50,000 heavy SUV in June of 2010 and used it 100% for business in 2010. It may write off $40,000 of the cost of the vehicle on its 2010 return, as follows: … $25,000 expensing deduction (Sec. 179(b)(6) Limit, see below under “History”), plus … $12,500 of…
Tax-wise Gifts for Loved Ones
Tax-wise Gifts for Loved Ones One of the great joys of parenting (or grand parenting) is watching your youngsters reach milestones, large and small. Nurturing these loved ones. Offering them the emotional and financial support that they need in order to thrive. From an estate planning perspective, making gifts is an excellent way to accomplish…
10 Things Every Taxpayer Needs to Know About the Pension Law
10 Things Every Taxpayer Needs to Know About the Pension Law The Pension Protection Act, signed into law on August 17, 2006, is designed to address the nation-wide problem of under-funded pension plans. The law penalizes noncompliant companies and encourages employee contributions, but many of the changes directly impact taxpayers of all ages, regardless of…