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Abstract: 

An increasing number of taxpayers today view their art and other collections as investments, and look to their collections for financial gain. When a collection is used as an asset to be borrowed against, sold, exchanged, or gifted, of course tax wrinkles arise. This article explores various methods of disposing of art and other collectibles, detailing the pros and cons of each alternative, including related tax plusses and pitfalls.

Keywords:  tax planning; art as an investment vehicle; borrowing against art collections; charitable contributions of art and collectibles; related use rule; alternative sales approaches; dealer vs. investor vs. collector; like-kind art exchanges

Affiliations:  1: Horwood Marcus & Berk Chartered.