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
When you donate to charity, you can get some of what you donated deducted from what you owe in taxes. If you buy an art piece and then later an appraiser says it’s worth a million dollars and you donate that art piece to charity, you get to say you donated a million dollars regardlesswhat you paid for it. The thing is art is subjective and appraisers can have a lot of leeway in how much they appraise an art piece for. So it would be really easy to get away with corrupting appraisers to save money on taxes.
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