IRS Ruling Could Give Younger Art Collectors Much Better Tax Break

artnet News | Eileen Kinsella:

An Internal Revenue Service rule change enacted this past summer opened an advantageous tax strategy for art collectors, according to a Forbes post this morning penned by art law specialists Diana Wierbicki and Paul Roy.

Sales of art and collectibles carry one of the highest tax rates, with a 28 percent long-term capital gains rate attached. One strategy that is popular among collectors are what is known as charitable remainder trusts (CRTs). These can be further set up or classified as CRUTs (charitable remainder unit trust) or CRATs (charitable remainder annuity trust)… Read more

Image: Diana Wierbicki. Courtesy of Withers Worldwide