Wednesday, November 26, 2008

Taxing Art

The Artist-Museum Partnership Act, a bill introduced by Senator Patrick Leahy (D VT) would amends the Internal Revenue Code to allow taxpayers who create literary, musical, artistic, or scholarly compositions or similar property a fair market value tax deduction for contributions of such properties or the copyrights, or both, to certain tax-exempt organizations, if such properties are properly appraised (value determined at the time of contribution)and are donated no sooner than 18 months after their creation.

Another art-related Tax bill has sponsored by Pete Domenici R-NM and Charles Schumer D-NY would provide the same capital gains treatment for art and collectibles as for other investment property. Currently capital gains tax rate for art and collectibles is 28%, compared to 15% for other types of investments.

No comments: