Seize the Opportunity (Zone): Latest Tax Strategies for Owners of Art and Other High-Value Assets

 

S&W Tax Briefing (4:00 – 5:45 p.m.)

Sullivan & Worcester Conference Center, Boston, MA
October 24, 2018

Art has aesthetic value of incalculable importance, but it can also be a large – and growing – repository of wealth. Recent changes in federal tax law have altered dramatically some of the key strategies that can (and should) be used to manage a valuable and growing art collection, as well as other high-value tangible and intangible assets.

Art is categorized as a "collectible" and therefore is subject to a federal capital gains rate of 28%. Add in state income tax and the Net Investment Income Tax ("NIIT"), and the combined tax rate can be upwards of 40%, depending on the state of residence. Meanwhile, the famously illiquid nature of an art collection makes for a very challenging estate plan.

Before 2018, like-kind exchanges under Code Section 1031 were a viable strategy for upgrading an art collection while deferring tax, but that provision is no longer available. In its place, however, is a fascinating new tax benefit called a Qualified Opportunity Fund ("QOF"), which allows a taxpayer selling appreciated property to rollover the gain into a qualifying investment, which can include investments in real estate or in equity of a company located within a so-called "Opportunity Zone." Amazingly enough, it may even be possible to invest gain into a for-profit art museum located in an Opportunity Zone – in other words, sell art to buy other art.

The topics discussed will include:

Please join us for this exciting seminar on some of the latest developments in tax planning for the world of art and other high-value assets. A reception and networking event will follow immediately after the program.

Speakers:


If you are interested in attending this event, please email Mike Silverson at msilverson@sandw.com for an invitation.