The New York Times reports on a tax loophole regarding several states where art purchases can be awarded tax-free status if the newly gotten works are first lent to an art museum. The tax loophole explains why Francis Bacon’s Three Studies of Lucian Freud, the most expensive work ever sold at auction, was first exhibited at the Portland Art Museum after its record-setting purchase last year. “It is an amazing opportunity for these smaller cities to show these works,” says Mack McFarland of the Pacific Northwest College of Art. “But one does have to wonder, doing a cost-benefit analysis on a more global scale, whether or not the tax break for these wealthy collectors is worth it.”
Read more at The New York Times
