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

443 views

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

12 Answers

Anonymous 0 Comments

The scam version of this is a little dated.

These days the IRS has their own appraisers (AAS), they do look closely at big ticket donations that don’t seem to fit reasonably expectations.

It used to be much less regulated and monitored, but now there are more records requirements for art trading so it’s harder to lie about what you paid for a painting

These days, real estate is much more likely to be the tool for tax scams. Rich people buying expensive art are more often doing it for bragging rights or investment.

You are viewing 1 out of 12 answers, click here to view all answers.