How does buying stuff like paintings and then donating them benefit rich people with “tax breaks”?

Question

Just saw a tiktok saying that art investment tax loopholes are very easy and common.

I don’t understand how it can benefit the rich people doing it though.

Say they buy a painting at 10,000£, then donate it to charity a year later. They are now down 10k and also don’t have a painting. How does declaring that as a charitable donation change anything?

In: 88

Answer 1

Ah, the art of tax breaks for the wealthy! Where “value” becomes as subjective as interpretive dance. #ArtfulDodgers