Planning for Art Investments
Taxation, Valuation, Estate Planning, and Charitable Giving
Richard M. Horwood, J.D., LL.M., M.B.A.

When a love of art becomes a passion for collecting, the rewards and risks grow enormously. This book was written for those whose interest in art and collecting has become a serious and important part of their lives.

Unlike conventional investments, which arise from rational financial objectives, an investment in art usually begins from a very different place—aesthetics, sentiment, and even a need to express one’s own individual values are often behind a passion to collect. Sooner or later, however, the education of the serious collector must also include understanding how art functions as an investment—advice that many legal and financial advisors lack the knowledge and experience to provide.

In Planning for Art Investments, nationally recognized attorney and art investment authority Richard M. Horwood explains everything serious collectors and their legal and financial advisors need to know about investing in art. Horwood guides you through the complexities of acquisition—establishing authenticity and provenance—and offers helpful advice on how to work with dealers and auction houses to build (or disperse) a collection. At some stage a collector may begin selling, trading, or donating works from the collection—and the book’s guidance for understanding the financial and tax implications of divesting becomes important, as well as decisions concerning succession and gifting strategies. As collectors spend time enjoying their objects, they should keep in mind the journey that their objects will take after their lifetime. Planning for Art Investments is intended to assist collectors, heirs, and advisors as they seek to develop, protect, and enhance the value of a collection and ensure an enriching legacy for future generations.

Tax, financial, and estate planning advisors will find a wealth of guidance specifically tailored to the unique concerns of collectors  …

  • Choosing from among the various special federal income tax treatments available for collectibles—and the advantages and disadvantages of each in specific circumstances
  • How to safeguard a collection from various forms of theft and fraud
  • How state taxes differ from federal and how to avoid state tax traps
  • When and why disposition should be accomplished via gift, sale, or donation
  • Why ownership records are important to protect value
  • How government regulations on import and ownership affect value
  • How making strategic loans to museum exhibitions adds value to and enhances the provenance of a collection
  • How to decide when to sell through a dealer, an auction house, a private sale, or online
  • Understanding seller’s commissions, buyer’s premiums, reserve pricing, and guarantees—and the sometimes unexpected impact each has on tax liability
  • Deciding whether to donate a collection to a private operating foundation, a public charity, or a private non-operating foundation—and the advantages and disadvantages of each option
  • Understanding the uses and limitations of gift agreements

Richard M. Horwood, J.D., LL.M., M.B.A. is a partner in the Trusts and Estates Group of Horwood Marcus & Berk Chartered, a law firm in Chicago, Illinois. He has devoted his practice to business, financial, and tax matters, including business law, art law, income/gift/estate taxation, as well as charitable, succession, and collection planning. He advises business owners, nonprofit organizations, donors, and collectors on a variety of complex planning issues. Mr. Horwood advises collectors regarding key issues such as authentication; provenance; collection management; tax matters; disposition and charitable, museum, and family gifting. As a collector’s counsel, he assists in enhancing the value of a collection by positioning exhibitions and cataloguing as well as working with dealers, auction houses, family foundations, and museums. He has significant experience negotiating art loan agreements, gift acceptance agreements, dealer and auction agreements, and tax-efficient planning strategies during a collector’s lifetime and at his or her death.

Related Publications:
Journal of Taxation of Investments

Complete Guide to Nonprofit Organizations
Family Foundation Advisor




Table of Contents (PDF)
Format: Hardcover Book
© 2015 158 pp.
ISBN: 978-1-939083-036
Price: US $135.95
Product Code: PAIT



To order, use the orderform or contact:
Civic Research Institute • P.O. Box 585, Kingston, NJ 08528
Tel: 609-683-4450 • Fax: 609-683-7291

©Civic Research Institute
Privacy Statement