How One Art Collector Saved $68,469 in Taxes

Artwork Archive | January 4, 2016

While you’re enjoying hugs and laughs with friends and family this holiday season, we thought we would sprinkle some cheery tax tips on top. We found an interesting infographic produced by the New York Times, outlining a way to save money on your taxes.

The tip is: In some cases, you can save money on your taxes by displaying your art out of state before you bring it home.

Here’s how one art collector saved $68,469 in taxes: How to Save $68,469 in Taxes via The New York Times

There are five states that do not have a use tax: Alaska, Delaware, Montana, New Hampshire, and Oregon, according to the Sales Tax Institute. A use tax is a tax that is applied to tangible goods that are used, consumed, or stored in the state. This tax can only be applied if you did not pay sales tax on the tangible item. In other words, sales tax and use tax are mutually exclusive, so you will never be charged for both in the same state.

If you are interested in exploring this opportunity, we recommend consulting your tax attorney regarding your next art purchase.

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