Income Tax Planning for Visual Artists, their Dealers, Investors and Collectors

TaxNotes, February 2021

San Diego Legal Studies Paper 21-020

41 Pages Posted: 19 May 2021 Last revised: 16 Jun 2021

See all articles by Herbert I. Lazerow

Herbert I. Lazerow

University of San Diego School of Law

Date Written: May 19, 2021

Abstract

The visual artist, the art dealer, the art investor, and the art collector revolve around the same property. Be it painting, drawing, prints, sculpture, photographs, fabric or glass art, each raises tax problems for which advanced planning can be useful. Sometimes the tax problems of all four categories of people are the same, as in the necessity to prove a profit motive in order to deduct expenses; in other cases, such as on the sale or donation of an artwork, the results seem irrevocably different. This article will explore those similarities and differences, suggest steps advisors can take to maximize tax benefits, and occasionally question whether the similarities or the differences between taxpayers in those different categories, or the rules applied by IRS, make sense.

JEL Classification: K34

Suggested Citation

Lazerow, Herbert I., Income Tax Planning for Visual Artists, their Dealers, Investors and Collectors (May 19, 2021). TaxNotes, February 2021, San Diego Legal Studies Paper 21-020, Available at SSRN: https://ssrn.com/abstract=3849598

Herbert I. Lazerow (Contact Author)

University of San Diego School of Law ( email )

5998 Alcala Park
San Diego, CA 92110-2492
United States

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