TAXES and ART
Alton Perkins, the CEO indicated that according to Ed Okil, the Executive Director of the National Institute of Appraisers, the most important thing to remember when purchasing a work of art in light of taxation is WRITTEN RECORDS.
These records should include a receipt or invoice from the purchaser which includes the date you made the purchase, the name of the person or entity you bought it from as well as their address, phone number and how much you paid for the piece. Also these should include the name of the creator of the work, a physical description of the piece, the name, edition and number of the piece, a certificate of authenticity and title, and any other pertinent information that is known about the piece.
You should also retain the canceled check or charge slip with which you paid for the item. It is generally recommended to keep these documents in one file and if possible, keep it in a safe deposit box or fire proof safe.
Policies on the taxation of proceeds from art sales and/or donations of art can be quite complicated for even a top accountant or financial planner unless they specialize and are experts in tax matters related to art.
This is designed as a guideline only for your tax consultant as it relates to the current rules and regulations established by the Internal Revenue Service for federal taxes. Policies can differ from state to state, so we strongly suggest that you contact your certified public accountant (CPA) or tax attorney with questions on your specific art dealings sine you are eventually going to have to deal with the IRS in connections with it.
Art sold by www.verdultgallery.com, www.verdultonline.com are appraised by the National Institute Of Appraisers.
The National Institute of Appraisers specialize in assessing the Artwork of William Joseph Verdult.
Alton Perkins,
CEO of Wealth Enterprises Corporation/Yazzy's Fine Art Corporation
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