A UK tax judgement this week has challenged the taxation of art works in the country, allowing Portrait of Omai by Sir Joshua Reynolds to be taxed as a “wasting asset,” thereby avoiding capital gains tax.  The painting had hung in North Yorkshire’s Castle Howard for over two hundred years, and was recently sold by owned Simon Howard, who claims the work contributed to the appeal of the castle for tourists.  “The case could give vendors savings of 28 per cent on the sale of works of art that fulfil the same criteria,” said art agent Robert Holden. (more…)

Art dealer Larry Gagosian’s lawsuit against former client Charles Cowles incurred a setback by a U.S. District Court judge.  The 44-page court finding, issued last week, has illustrated issues with the nature of the sales relationship between Cowles and Gagosian which may call into question whether or not Gagosian officially represented Cowles in the sale of Mark Tansey’s “The Innocent Eye Test.”  “(We) believe that the potential strength of Mr. Cowles’s legal defenses outweighs the relatively moderate level of fault,” wrote judge Michael Dolinger.

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