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Tax planning for art collections featured at Heckerling Institute

Speaking on the subject was Ralph Lerner, a partner at Sidley Austin LLP in NY and co-author of the award winning treatise "ART LAW: The Guide for Collectors, Investors, Dealers and Artists", acclaimed as the industry bible by Forbes Magazine. Lerner is a nationally-acclaimed speaker and writer on the topic of tax planning for collectors and artists and represents many of the foremost artists, collectors and art dealers in America.

The session focused on the deductibility in the U.S. of the expenses of maintaining a collection, the tax treatment of gains and losses realised on sale of a collection, whether a collection can be used in a tax free exchange, certain problems of insurance, and sales and tax issues. Identification as a dealer, an investor, or a collector and the tax ramifications of each were discussed and are critical to examine the general statutory provisions and in determining if an owner may deduct all, some or a portion of their collection-related expenses and losses incurred in holding a collection.