Taxation and Contract Issues in the Art World
Boston Tax Attorney Helping You Understand and Resolve Your Art Taxation and Contract Concerns
Commissioning, buying, selling and loaning works of art are much more than financial transactions. Art has the ability to change our lives – how we think and how we feel – and it can leave an impression that lasts a lifetime. But, of course, there are financial considerations involved as well, and this means that there are tax-related issues that need to be addressed.
Our firm offers strategic tax advice to artists, museums, municipalities, trusts and foundations, individual purchasers, art galleries, auction houses and other clients. We also provide representation to artists needing assistance with sale contracts, art consignment agreements, relocation of art to different countries and much more.
Kevin E. Thorn, Managing Partner of Thorn Law Group, is widely regarded throughout Boston and internationally as a leading tax attorney for complex and nuanced state, federal and international tax matters. If you have questions about art taxation in the Commonwealth of Massachusetts, or concerns related to the Internal Revenue Service (IRS) or any other governing body throughout the United States or around the world, Thorn Law Group can help you meet your legal obligations while preserving your assets to the fullest extent possible.
Potential Tax Issues in Art Sales, Loans and Other Transactions
Transactions involving art can potentially have numerous local, state, federal and international tax implications. Depending on the type of work, the work’s history, the type of transaction and the parties involved (among other factors), the disposition of a piece of art can potentially bring into play one or more of:
- Sales and use tax
- Income tax
- Expense deductions
- Capital gains tax
- Estate and gift tax
- Personal property tax
- Resale (and “droit de suite”) royalties
- Import, export, and other cross-border tax obligations
- “Trade-in” exemptions
- “Like-kind” exchanges (which are no longer tax-exempt for personal property, including artwork, under federal law)
- International Tax Issues Dealing with Disclosures and Forms to File with the IRS