TreatiseTreatise

All About Tax Tips for Collectors

 by Ralph E. Lerner, Judith Bresler
 
 Copyright: 2008

 Product Details >> 

Product Details

  • ISBN Number: 9781402410710
  • Page Count: 263
  • Number of Volumes: 1
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PLI’s All About Tax Tips for Collectors provides in-depth yet accessible legal and tax guidance that helps you achieve beneficial tax-planning objectives more easily and at less cost.
 
Written by two of America’s foremost art law practitioners and authors, this plain-English softcover guide spotlights tax-advantaged strategies that you can exploit now, explaining the advantages and operation of (and requirements for) various types of charitable and noncharitable transfers, as well as certain kinds of tax-free like-kind exchanges.
 
Including adaptable sample forms and step-by-step checklists, All About Tax Tips for Collectors helps you to avoid planning strategies that are no longer desirable, such as fractional gifts; avoid pitfalls associated with certain planning instruments; choose appraisers whose qualifications meet PPA standards; use blockage discounts properly and avoid penalties; settle valuation disputes with the IRS and avoid litigation; obtain the right collection insurance — and a lot more.
 
Updated periodically, All About Tax Tips for Collectors is a vital guide for art collectors, art investors, wealth planners, and attorneys.
Chapter 1: The Collection As Investment Property
  • Definitions2
    • Dealer2
    • Investor3
    • Collector5
  • Statutory Provisions5
  • Expenses6
    • Prior Law6
    • Conclusions Under Wrightsman8
    • Section 1839
      • Section 183(b)13
      • Cases Under Section 18315
    • Section 6823
  • Losses24
    • Losses on Sales24
    • Losses on Inherited Property26
    • Casualty Losses26
    • Involuntary Conversions28
  • Exchanges28
  • Record Keeping33
  • Carryover Basis Rules33
  • Self-Directed Retirement Plans34
  • Insurance37
  • Sales and Use Taxes38
    • Sale of Art39
      • Delivery Out of State40
      • Purchase Exclusively for Resale42
      • Trade-In Credit43
    • Advice on Purchase or Sale44
    • Purchase at Auction45
  • Appendix 1-1 : Form 8824: Like-Kind Exchanges (and Section 1043 Conflict-of-Interest Sales)47
Chapter 2: Valuation
  • IRS Valuation Regulations55
  • IRS Valuation Procedures58
    • Rules Before January 1, 198558
    • Choosing an Appraiser59
    • Additional Information on Appraisers and Valuation60
    • Appraisal Rules Effective January 1, 198561
      • Dangers of Not Having a Qualified Appraiser63
      • Qualified Appraisal63
      • Qualified Appraiser65
      • Appraisal Summary66
      • New Appraisal Requirements–Notice 2006-9668
      • Appraisal Fee69
      • Appraisal Foundation69
      • Guiding Principle69
    • Advance-Valuation-Ruling Procedure70
  • IRS Record-Keeping Requirements71
  • IRS Art Advisory Panel72
  • Determining Fair Market Value73
    • The IRS Determination of Value73
    • Revenue Rulings on Valuation74
      • Revenue Ruling 79-256, 1979-2 C.B. 10574
      • Revenue Ruling 79-419, 1979-2 C.B. 10775
      • Revenue Ruling 79-432, 1979-2 C.B. 28975
      • Revenue Ruling 80-69, 1980-1 C.B. 5576
      • Revenue Ruling 80-233, 1980-2 C.B. 6976
      • Recent Rulings76
    • Litigation on Valuation77
      • Retail Market, Tax Shelters, and the Blockage Discount77
      • Gifford M. Mast, Jr. Case81
      • Penalties on the IRS83
      • Other Valuation Cases84
    • The Quedlinburg Treasures89
    • Blockage Discount91
      • David Smith92
      • Georgia O’Keeffe95
    • Buyer’s Premium102
    • Current Trend in Valuation Cases109
  • Penalties for Incorrect Valuations109
    • New Penalty Rules109
    • New Disclosure Rules for Donee Charitable Organizations112
    • Regulation of Appraisers115
    • Appraisal Costs115
  • Appendix 2-1 : Publication 561: Determining the Value of Donated Property117
  • Appendix 2-2 : Form 8283: Noncash Charitable Contributions133
  • Appendix 2-3 : Form 8282: Donee Information Return135
Chapter 3: Charitable Transfers
  • Complete Lifetime (Inter Vivos) Charitable Transfers140
    • Requirements for Claiming a Charitable Deduction140
      • Status of the Organization141
      • Type of Property141
        • Capital Gain Property141
        • Ordinary Income Property143
      • Related-Use Rule146
        • Private Letter Ruling 77-51-044148
        • Private Letter Ruling 80-09-027148
        • Private Letter Ruling 81-43-029148
        • Private Letter Ruling 82-08-059148
        • Private Letter Ruling 91-31-053148
        • Private Letter Ruling 98-33-011149
      • Related-Use Reporting149
      • Qualified Appraisal by a Qualified Appraiser150
    • Charitable Deduction Limitations150
      • General Percentage Limitation150
      • Ordinary Income Property Percentage Limitation150
      • Capital Gain Property Percentage Limitation151
      • Examples152
    • The Section 68 Limitation153
    • Alternative Minimum Tax154
    • Checklist for Collectors154
  • Partial Lifetime Charitable Transfers156
    • Retained Life Estate: The Future Interest Rule156
    • Fractional Gifts—Prior to August 2006159
    • Fractional Gifts—After August 2006160
      • Valuation Limitation160
      • Timing Limitation161
      • Use Limitation161
      • Recapture of Deduction161
      • Denial of Deduction162
      • Danger of Fractional Gifts162
    • Fractional Interest—Valuation Issues163
    • Limited Present Interest168
    • Gift Annuities169
    • Bargain Sale169
    • Loans to Charities170
    • Charitable Remainder Trust—Lifetime170
      • Collection Kept for Trust Term172
      • Collection Sold Within First Year175
      • Collection Sold After First Year180
    • When the Charitable Donation Is Completed181
    • Private Operating Foundations182
      • Income Test183
      • Asset Test184
      • Endowment Test187
      • Support Test187
    • Techniques to Avoid187
  • Complete Testamentary Charitable Transfers189
    • Changes Under ERTA190
  • Partial Testamentary Charitable Transfers192
    • Charitable Remainder Trust: Testamentary192
    • Charitable Lead (Income) Trust196
    • Planning for the Collector—Charitable Lead and Charitable Remainder Trusts200
    • Spousal Use202
    • Double Deduction Denied205
    • Fractional Interest206
      • Amount of Deduction207
    • Retained Copyright Interest209
      • Tax Law Background209
      • Copyright Law Background210
      • Interaction of Tax Law and Copyright Law211
      • The Collector212
      • The Artist213
      • Additional Problems Under Section 2055(e)(4)214
      • Conclusion215
  • Appendix 3-1 : Charitable Contributions Chart217
Chapter 4: Noncharitable Transfers
  • Inter Vivos Transfers219
    • Advantages of Lifetime Gifts220
    • Disadvantages of Lifetime Gifts222
    • Intrafamily Transfers223
    • Basis on Transfer223
    • Grantor Retained Income Trusts224
    • Lifetime Sales228
  • Testamentary Transfers228
    • Outright Transfer228
    • Fractional Interest—Valuation Issues229
    • Transfer in Trust231
  • Selling the Collection After Death232
    • Deduction of Selling Expenses232
    • Denial of Double Deduction242
    • Basis for Purposes of Sale243
  • The Museum and Restricted Gifts246
Chapter 5: Index to All About Tax Tips for Collectors
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