Fine Arts / Collectibles

The ownership of fine art, antiquities and other collectibles is not immune to the effects of the internal revenue code. An investor knows their art collection can quickly rise in value in a volatile market. The gain from the disposition of a collectable is taxed at a maximum capital gain rate of 28 percent, rather than 20 percent of other capital assets. An IRC Section 1031 Exchange, also known as a like kind exchange, can help you delay that gain.

The uniqueness of the items owned creates challenges at the time of their sale or disposition. Our staff of experts will help you structure a tax deferred exchange that best fits your needs while complying with the complexities of IRC Sec 1031.

Museum and corporations often acquire their collections of fine art, antiques and antiquities at a much lower basis than that at which they are later sold. A tax-deferred exchange will allow a museum or corporate collector to defer capital gain while disposing of low-basis assets and increase leverage through reinvestment of the cash savings.

Our exchange experts have extensive experience in the sale and purchase of fine art exchanges. Exchange Services Group can work with you to develop your fine art exchange to best utilize all the assets from your sale within the requirements of the tax code.

If you would like more information about how Exchange Services Group can assist you, please call John Lamberts toll free at 1-800-560-8485.