At AA Fine Art, we understand that one person’s experience acquiring and enjoying art, collectibles, and estates is very different from the next. That is why we want to be your advocate for fine art collection management no matter what they may look like for you.
Here are just a few of the most frequently asked questions from our customers.
What Should I Do If I Inherit Art?
Becoming a fine art collector by choice is one thing, what if you inherit an estate with art or art on its own? First, determine if the past owner kept any sort of inventory or catalog of their art or of the art they are passing on to you. If it exists, having this documentation can give you a leg up when it comes to appraisal and art valuation. The more documents and information you have for the appraisal, the better.
Second, get a current appraisal. For tax purposes, appraisals need to be up-to-date when you claim your inheritance. You cannot use an appraisal or valuation that is several years — or several decades — old. After claiming your inheritance and paying taxes, you can choose to keep pieces or to sell. If you choose to keep your art, learn how to display artwork without damaging it. Certain types of lighting and the oils from our skin and fingertips can damage paintings. Store and display paintings in ideal conditions.
Can I Write Off Artwork Donations On My Taxes?
The answer to this question is: it depends. In many cases, the artist cannot donate a piece of his or her work to charity and write that off. If you are a self-employed artist, you are eligible to receive tax deductions to run your business. That means you cannot double-dip by painting something, writing off the materials, and then donating it and trying to write off the donation.
As for collectors, you will not be reimbursed for purchasing or acquiring art. Artworks are subject to tax. However, when it comes time to sell or donate your collection, you may be able to write off part of the value and/or the taxes you paid.
The answers to this question are highly individual and nuanced. If you are uncertain, team up with the professionals at AA Fine Art for specialized fine art collection management.
Incorporating Art Into Your Divorce Papers Or Will
Divorce and death are a fact of life. How does your art come into it? If you get a divorce, art becomes an asset that must be divided up — just like everything else. Similarly, art collections or estates are highly valuable assets that you should include in your will. Work closely with art, estate, and furniture appraisers to put a value on your assets before big life events occur.
What is the secret to fine art collection management? Collection management varies from person to person, and from collection to collection. Contact AA Fine Art about your specific needs.