Trump tax plan paints pretty picture for art collectors

Washington – For art aficionados, President Donald Trump’s tax plan paints a pretty picture.

The president’s tax overhaul proposal – which he has pitched as a boost for hardworking farmers and truckers – would repeal the federal estate tax paid by people who inherit multimillion-dollar estates. That break could benefit art collectors gazing upon pricey collections of Rothkos and Basquiats.

Under current rules, the first $11m of an estate is exempt for a married couple. Art lovers with pricier collections may seek to lessen the tax liability for their heirs by selling or donating their art or placing it in a trust. Otherwise, their heirs may end up selling off art to pay the IRS.

Without the estate tax, it would be easier for people to keep collections in the family. Such a shift in the tax rules could have a ripple effect on the art market and slow the flow of art from private homes to museum walls. Read more

2018-10-29T09:52:47+00:00