Wealthy collectors establish museums for tax breaks

Wealthy art collectors are opening private museums, sometimes down the road from their homes, to claim lucrative tax benefits, reports the New York Times.

For instance, the Brant Foundation Art Study Center is near the Connecticut home of its patron, newspaper owner Peter Brant, reports the Times. Its non-profit status makes it tax exempt, but few members of the public will ever see the collection.

Advisor’s Jessica Bruno reports there are ways for Canadian collectors to donate pieces to galleries and reap substantial tax savings.

“Regardless of a donor’s circumstances, the most tax-effective strategy is to give an item of cultural importance to a gallery.”

Read more on how to save tax by donating art here, and on private galleries here.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.