Why do people buy huge canvases with a few dots on from an arts unheard of for millions? I know it’s commonly used to launder money. Can someone explain how the process works?
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People don’t buy the art for millions. There are a few different things people do. To launder money they sell the art for a few thousand, but tell them IRS they sold if for millions, and use illegal money to make up the difference. Another thing they can do is tax evasion. If they buy art for a few thousand, then an art appraiser says it’s worth millions, they can donate the art to some charity and get that fake value in tax deductions.
In a basic way, a lot of it is like this – say I sell you a painting for 10m, then you go one to sell that painting again (for really any price) – so the money I used to buy it is now “legal” as it was a legit business deal. When asked where I got 10 million, its that I sold the painting
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