This week, anticipating a new clash between collectors and the taxman…
AIM HIGH
On April 6, New York state announced a new budget that does exactly what many in the liberal-leaning cultural sector have been clamoring for every level of government to do in recent years: raise taxes on the highest-earning residents, partly to directly benefit the art industry. The question now will be whether this more progressive tax policy works as envisioned, or whether it backfires by driving the one percent away from spending, giving, and even living in New York.
All told, the state’s fiscal year 2022 budget will channel more than $1 billion in relief and recovery funding to small businesses within and beyond the cultural space. The lion’s share of that total ($865 million) will take the form of grants to small businesses, including both for-profit and nonprofit arts institutions accosted by our ongoing public-health nightmare. Another $139 million will be doled out to the same catego
Frieze Week 2020.
Lisson Gallery (Cork St)
Photo by Linda Nylind for Frieze.
A version of this story first appeared in the spring 2021 Artnet Intelligence Report, which you can download in full for free here.
“Imagine a world where you could not fly around the globe anymore. How would you conduct business?”
That was the “thinking-out-of-the-box” assignment that a consultant gave Phillips executives at the auction house’s annual strategy meeting in January 2020. “We looked at each other, like, ‘What is he talking about?’” Cheyenne Westphal, the company’s chairman, recounted.
“Just imagine there might be a volcano erupting,” the consultant told the assembled honchos, many of whom had traveled to New York for the occasion.
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Crypto-art investors could face a surprise on tax day since NFTs can lead to a hefty tax bill
Crypto-art investors could face a surprise on tax day since NFTs can lead to a hefty tax bill
Grace KayApr 2, 2021, 02:49 IST
5,000 everydays artwork by Beeple, which was sold at Christies auction house for $69 millionReuters
Crypto art is taxed when it is purchased and sold, as well as through the cryptocurrencies used to buy the NFTs.
NFTs are not yet subject to the same sales taxes as physical art pieces.
After his $70 million NFT sale, Beeple likely faces taxes worth tens of million of dollars.
Reuters
Crypto art is taxed when it is purchased and sold, as well as through the cryptocurrencies used to buy the NFTs.
NFTs are not yet subject to the same sales taxes as physical art pieces.
After his $70 million NFT sale, Beeple likely faces taxes worth tens of million of dollars.
While crypto art sales have boomed in the past month, catching the national spotlight with flashy price tags, what many buyers and sellers might not realize is that non-fungible tokens or NFTs can generate a large tax bill.
In March, a crypto art piece by digital artist Mike Winkelmann, also known as Beeple, made history when it sold for nearly $70 million. When told how he would be taxed on the sale, Winkelmann expressed surprise.
So You Just Bought an NFT. Here's What That May Mean for Your Taxes artnet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from artnet.com Daily Mail and Mail on Sunday newspapers.