The Law Offices of Aaron Resnick, P.A. is extremely proud to have developed a practice group focusing on art and cultural property law. The firm handles all types of art litigation and alternate forms of dispute resolution, and also actively represent and counsel clients in corporate and commercial art law matters.
The Wall Street Journal has an update on a proposed bill in the Senate (Schumer – NY) to revive tax incentives for fractional gifting of art to museums. Read the article here. Senator Schumer’s proposed bill can be read here.
Sen. Schumer hopes to “restore the incentive for collectors to share these works of art with the public,” he said.
Among other things, the proposed change allows donors 20 years to complete the donation of the gift and lets them take a tax deduction on some of the appreciation.
Here is how it would work: In the first year, if a donor who owns a $10 million painting contributes 10% to a museum, he would receive a $1 million deduction. If the donor gives another 10% the next year and the fair-market value of the artwork has increased to $12 million, the donor receives a deduction on the appreciated value, although it is limited to his 90% stake in the artwork, and thus would amount to $1.08 million.
Earlier in the year, Senator Schumer introduced a bill to permit deductions for works of art donated to charities – if (among other requirements) you can get an appraisal. This bill was introduced in February and sent to committee.
Non-litigation art lawyers at the Firm include trust and estates experts who advise visual artists and their estates on taxation and estate planning matters such as setting up foundations and donating works of art to museums.