There Is An Accountant Art Expert – Who Knew?
Although estate taxes play a major role in art planning, there are numerous other tax issues. If you want to diversify your collection or get the yen to move from say Impressionism to Abstract, you might have significant taxable gains. Although I’ve always believed that 1031 might have application in the art world, Gary confirmed that it is a viable technique. He recommends that you involve an institutional exchange facilitator which might also be doing real estate and equipment since they will have the facility with the proper tax execution. I couldn’t pry a name out of him.
Then there are state tax issues. The New York Times recently ran an article about a sales and use tax dodge that some collectors were using. Works that they bought were shipped on loan to a museum in a state that would not charge sales or use tax. After a few months, the work could be moved to the collectors home and he beats the use tax because the original use was the museum loan. Gary’s firm put out an alert, that nifty as this idea might be it does not work if you bring the artwork into New York, New Jersey, or Connecticut.
True The Vote Suit Dismissed By Bush Nominated Judge – Jenny Beth Martin Not Happy
Here is where it gets lawyerly. TTV wanted to invoke the “volunatry cessation exception to the mootness doctrine”. The idea is that even though the IRS has backed off by granting the exemption, it still might get back to its old tricks, after the judge is no longer looking over its shoulder. TTV expressed concern that the IRS might select them for audit in the future based on inappropriate criteria. The Court found that to be too speculative.
TTV was also seeking money damages from several IRS employees involved in the application process. Citing other cases the Court noted that it is unnecessary to have a court created remedy since Congress has created a specific remedy for challenges to rulings on tax exemption. That is TTV could have gone to Tax Court to complain about its ruling being delayed or if it had been denied.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.