New IRS Rule Opens Tax Saving Strategy To Art Collectors

Forbes | Diana Wierbicki and Paul Roy:

Art and collectibles are subject to a 28% long-term federal capital gains rate, compared to a top rate of 20% for stocks and other investments assets.  Add on the 3.8% Net Investment Income Tax and state and local income taxes, and a New York City collector can end up paying up to 44% on gains; a California collector could pay up to 45%. So understandably, collectors are always looking for ways to mitigate this tax burden. A new IRS Revenue Procedure  makes using certain charitable remainder trusts (CRTs) as vehicles for tax deferral more viable for art and collectibles… Read more