Art and other collectibles are unique and very personal assets. However, expenses can add up quickly — purchase, transportation, storage, display, insurance, appraisals, conservation and restoration are just a few of the costs to consider. Individuals often look for tax strategies to offset these expenses. Although there are tax deductions available, it all depends on whether the IRS classifies you as a collector vs. a dealer or investor. Suzanne DeWitt, Managing Partner at DeWitt Law, understands the nuances and has designed tax strategies to offset much of the aforementioned. Fortunately for art lovers, there are some federal tax deductions available. Most art purchasers are classified collectors, who simply accumulate art for personal enjoyment. While collectors are limited on how to take advantage of those out-of-pocket expenses associated with acquiring and maintaining art, favorable tax treatment can often be received when selling or donating collections. Investors in art are another matter…like art dealers, investors have more flexibility to deduct expenses and the like, however, they must show that their interest in art is more than a hobby. That is, an individual must show that art is collected primarily for investment purposes, subject to some very intricate IRS rules. Let Miami’s go-to global tax minimization and cross-border wealth planning and implementation attorney Suzanne DeWitt help you navigate these highly complex matters so you can focus on acquiring new masterpieces this art season and beyond; DeWittPLLC.com
