The Gallerist’s Gambit: Financial Innovation, Tax Law, and the Making of the Contemporary Art Market
22 Pages Posted: 8 Dec 2019
Date Written: November 21, 2019
This essay focuses on the efforts of an enterprising art gallerist, Leo Castelli, to aggressively promote his stable of Pop artists through the development of several financial structures, including some designed to leverage the relatively generous income tax deductions and anemic enforcement regime of the time. In doing so, Castelli not only seeded the ground for the international ascendance of American visual art, but also engineered financial arrangements that fostered the development of a lucrative and resilient art market that endures to this day. With the aim to provide insights into both the legal-political and the art historical registers, this essay describes a tax law framework that provides a key piece missing from the art historical puzzle.
Keywords: tax; art; art history
JEL Classification: K34
Suggested Citation: Suggested Citation