Alerts: Art Law
Appraisal Relied on by Estate Undervalued Paintings by $1.77 Million
Recently, in Estate of Kollsman v. Commissioner the U.S. Tax Court held that an art collector's estate significantly underreported the value of two artworks for estate tax purposes. The problem: the estate relied on appraisals by an auction house specialist who had an incentive to "lowball" the appraisals to win the right to later auction the works. In addition to this conflict of interest, the court found that the values reported by the estate were unpersuasive because the auction house specialist exaggerated the dirtiness of the paintings and failed to adjust his appraisals after one of the works sold at auction for approximately five times more than the reported value. Here's what you need to know about the case. Read more.
April 4, 2017
Alerts: Art Law
Are Art Purchases by Out-of-State Residents Subject to New York Sales Tax?
New York State's tax authorities have been investigating whether New York-area art galleries are properly collecting and remitting New York sales tax on sales of artworks, and a recent New York State Department of Taxation and Finance ("Department") Tax Bulletin has shed some light on several Department positions with regard to sales of property to out-of-state residents, one of which is important to gallerists, collectors and other art industry professionals. Read more.
October 16, 2015
Alerts: Art Law
What to Do if You Receive a Subpoena
The press has reported on an investigation by the New York County District Attorney's Office into whether New York-based art galleries and collectors are properly collecting and paying sales tax on art purchases. Read more.
February 12, 2015
