Tax breaks on that Metal piece

[sweetjesus]

Not that I'm the guy in the market for big purchases (I barely have two Big Proofs rubbing together), but this may be of interest to those on the board who do pick up gallery pieces. Literally worth a read. Hope it helps someone!

http://www.nytimes.com/2014/04/13/busin ... nd.html?hp

[unioneighteen]

(I barely have two Big Proofs rubbing together)

haha!


Interesting article.. I wasn't aware of that tax. Does the IRS expect art sales to be reported when they are done privately and/or through a website like ebay? We're not all buying Warhols, but all those little sales add up to a lot of potential tax revenue.

[sweetjesus]

i think there's the idea that you claim any profits made from hobbies (i think it's in the same section as claiming gambling winnings). With purchases from galleries, they have to report sales, which means a paper trail leading to you and taxes.
Side note apropos of the little sales adding up....guy i knew who printed hippie shirts to sell on shakedown st used to say the big money actually came from stickers...those 2/$1 & 3/$1

[jjttdw]

(I barely have two Big Proofs rubbing together)

haha!


Interesting article.. I wasn't aware of that tax. Does the IRS expect art sales to be reported when they are done privately and/or through a website like ebay? We're not all buying Warhols, but all those little sales add up to a lot of potential tax revenue.

Yes, the IRS expects that every sale be reported and tax paid. They also expect brick and mortar stores to report all their sales but that doesn't happen either. If everyone paid all the taxes they legitimately owe there might not be a deficit.

[whyhoo]

(I barely have two Big Proofs rubbing together)

haha!


Interesting article.. I wasn't aware of that tax. Does the IRS expect art sales to be reported when they are done privately and/or through a website like ebay? We're not all buying Warhols, but all those little sales add up to a lot of potential tax revenue.

Yes, the IRS expects that every sale be reported and tax paid. They also expect brick and mortar stores to report all their sales but that doesn't happen either. If everyone paid all the taxes they legitimately owe there might not be a deficit.

"there might not be a deficit" can have many other, much heavier "if this or that happened"s in front of it