The New York Times looks at the current practices of “Like-Kind Exchange” on the fine art market, a tax provision allowing collectors and art flippers to defer taxes on sales income by using proceeds to buy an even more expensive work, and the attention it’s currently receiving from tax regulators.  “If you are doing five transactions over 25 years,” says advisor Josh Baer, “each time buying something more expensive, each time you don’t pay the capital gains tax on the way. At the end of the day you are way ahead.” (more…)

While fine arts auctions in New York State generate total sales of $8 billion annually, many dealers and market analysts are calling foul on auction practices intended to drive up the price of works with little to no supervision of the market.  “The art world feels like the private equity market of the ’80s and the hedge funds of the ’90s,” says James R. Hedges IV, a New York collector and financier. “It’s got practically no oversight or regulation.”

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