more homemade estate planning >>The painting was never insured because the family wanted to avoid paying taxes on the item; thus, the daughter sold it discreetly to a local dealer and pocketed a check for $400,000. When tax season rolled around, the woman’s accountant inquired about the origin of this money, and the daughter explained where it came from. The accountant advised the woman to call Winston Art Group to ask for an appraisal for capital gains tax purposes. After a simple Google search, Sleeman discovered that the dealer had taken the painting to London and flipped it at auction for $850,000. To avoid legal trouble, the woman had to re-open her mother’s estate and pay tax on the painting as it was valued by the Internal Revenue Service for the fair market value of the price paid at auction, in addition to legal fines. Just like that her $400,000 windfall disappeared, and then some—not to mention the stress of narrowly avoiding prosecution
Posted on: Wed, 30 Oct 2013 12:28:51 +0000
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