HomeArticlesArt + Taxes = The Dirty Truth Art + Taxes = The Dirty Truth By Frank Lundy September 25, 2019 Articles, Blog 100 Comments Tags:art, art auctions, art collectors, art market, art museums, Contemporary Art, damien hirst, john green, leonardo da vinci, Modern Art, PBS, pbs digital studios, Salvator Mundi, sarah urist green, the art assignment, theartassignment Related Posts How To Draw A Nose | Pencil Drawing | Nikel Esprit Enjoy autumn days with art during 2019 Korea Art Week Behind the scenes of Marina Abramović’s new virtual reality artwork About Author admin 100 Comments Kevin Russo April 6, 2018 One of the best shows YouTube has to offer. Reply Andrew Thompson April 6, 2018 You not wanting to talk about the art market on this channel is a nice parallel to Sarah Thornton's "Top 10 Reasons Not to Write About the Art Market": http://www.artmarketmonitor.com/wp-content/uploads/2012/10/10-Reasons-Not-to-Write-About-the-Art-Market.pdf Reply Chelsea April 6, 2018 oh "good" the rich get richer while the artist stays starving… Reply Joshua Taylor Madison April 6, 2018 Rich people screwing the rest of us. Reply Nancy Galindo April 6, 2018 Even if these videos are annoying for you to make, I think they have their place on your channel. I didn't know about this up until I got to university and it's good to look at what is being swept under the rug as well as the work that is presented well above it. Reply Allie Doak April 6, 2018 Burn the market Reply Sam Easton April 6, 2018 This video is a couple decades too late. The hyper rich art market has been shrinking, mainly, as the vid said, its a risk. Any artist who thinks they can make money just by selling their stuff via galleries, will starve. There's many varieties of markets for artists to get into. I know someone who makes six-digits from creating and hosting art workshops for people with dementia. Reply Yasmine April 6, 2018 I'm really shocked right now I live in Geneva and I wasn't aware that there were so many artworks hiding in our city. I know they are in Geneva because Switzerland is a tax haven but still Geneva can sometimes be so poor in cultural resources… That's a pity Reply Rosianna Halse Rojas April 6, 2018 So interesting and SO disturbing! Reply TS F April 6, 2018 I loved this video! It was amazing! Thank you so much 🙂 Reply Just A Peach April 6, 2018 Eat the rich. Reply Deepti Boddapati April 7, 2018 What will happen if the government decides to regulate it? Is there an Art Bubble that will burst? Reply Mikey April 7, 2018 So the entire art market is completely inflated and kept afloat by tax deductions. We're giving a small few unfair tax cuts while simultaniously subsudising driving prices out of reach for society and museums whom those very same deductions are meant to benfit? Sounds like art deductions seriously need to be regulated. Reply Henry Orton April 7, 2018 Curiously concerning. I believe a similar market exists for fine musical instruments. For example, none of the best violins in the world are actually owned by musicians because they could never afford them. Reply kathmandont April 7, 2018 #humansoflatecapitalism Reply Else F April 7, 2018 Thank you for that brilliant video – so informative and thought provoking. I really wish another word would emerge for what is described and going on. Something without the word "art" in it. It really has nothing to do with art but is a scheme and might as well be potatoes in stead of paintings. It brings shame to art as a whole and I secretly cringe when I have to call my works art. Many people today don't see anything other than a bad/good financial investment. Reply Crushi! .Music, Art & Love. April 7, 2018 Been Here, Tag! You're it! Reply Crushi! .Music, Art & Love. April 7, 2018 I consider what I sell (oh, the dreaded commercial on youtube even though we're watching commercials all day) very much exclusive and the rarest artworks. Reply Crushi! .Music, Art & Love. April 7, 2018 Imagine that. It's all a con and a scam. Nothing is worth owning anyway except your shelter, your food and your family and friends. And those cost enough already. Reply Munus Shih April 7, 2018 I love your shows so much that I would love to translate all the subtitles into Chinese so that many people can understand the concept with ease ❤❤❤ I've already submit a translation of "the case for Abstraction" since it's my favorite! hopefully I'll have time to do more. Reply Kari Sinkko April 8, 2018 This is why you buy in bulk. Reply Harry Jang April 8, 2018 Fantastic video but why so much hatred towards the rich when they've clearly just found a way to earn money. It's the failure of the government if we're looking for a scapegoat. The rich get richer because the poor doesn't imitate. Reply vlogbrothers April 9, 2018 This is such a good and disturbing video. It's so strange to think that the art market in the U.S. is so heavily subsidized by the U.S. government, not through grants to artists but instead through tax writeoffs to the richest Americans. -John Reply futseb April 9, 2018 Art industry has become a tax fraud and money laundering machine. You talk about here about tax and you are right, but it also used to provide false legitimitate origin of an income. Reply Joelle Jansen April 9, 2018 I'm glad people are encouraged to donate art works, but there's clearly something wrong with the current system. Reply Matthew Jackson April 9, 2018 What you're talking about here has been mentioned many times throughout history and that is commercialization ruins everything. Just about everything that becomes commercialized is ruined. Art, music, entertainment, etc. was ruined the day it became commercialized. It's been this way throughout history. At least now with the advent of the internet, one can view the works of independent artists whose works would never find their way into a mainstream art gallery. Reply safa saleh April 9, 2018 How ridiculous this world has become Reply Günther Möbius April 9, 2018 Thanks for the video! Great explanation. Just wanted to say, that there are also thousands of artworks locked away in every museum in the world. Reply KW eightthree April 10, 2018 I'm here because Hank told me to come here. Glad I'm here. Reply Petch85 April 10, 2018 Land of the richs.OrThe wise fools the less clever 🙁 Reply Scott Baker April 10, 2018 I like the video, but the audio sounds like you're in a coffee can. Reply Neons April 10, 2018 Good. We're all taxed way too much anyways. Reply itsallaguesswork April 10, 2018 3:09 Why is the tax on capital gain (28%)/income (based on appreciated value) ignored in this video? You can't claim loss without claiming the gain, can you? The whole point about the tax scam is fully valid, the question is, why leave out a critical information? Reply Art Squire April 10, 2018 Poor artist barely makes anything. 🙁 Reply Larry Hunt April 10, 2018 This really grinds my gears! Reply Russell Franklin April 10, 2018 Interesting. It really reminds me of the housing bubble that eventually burst with the financial crisis. I wonder if this bubble will eventually burst. All it takes is one shake in the collective confidence… Reply Kevin Downey April 10, 2018 Thank you Reply Carson Bills April 11, 2018 This is my favorite art assignment video ever Reply Bang lethanh April 11, 2018 buying arts is the good investment, but studying art is the worst Reply Nedah Zamani April 11, 2018 Thank you thank you for articulating this so clearly! It's a business practice that's closely guarded among the 1% and major financial institutions and it's damn near impossible to break through to see what's actually going on. The idea of all this art sitting in the dark against its whole purpose is definitely nauseating. Keep up the good work! Reply Mark Hatlestad April 11, 2018 Fantastic video that rings close to home to me… Classical musicians who play string instruments are heavily affected by the market of antique instruments inflating the value of all professional level equipment, regardless of the antique instruments functionality. It is common for affluent collectors/dealers to hoarde wonderful instruments kept in storage for decades without being used in hopes of flipping them once they increased enough in value. Many musicians rely on instruments being loaned to them, since they are so far out of reach for a working musician. While this can be a positive relationship, many times it leads to exploitive behavior (particularly to young women), or the instrument being taken away with little to no notice to be given to someone "more promising" or to pay off a financial obligation. I'm very lucky to have been able to bypass the brunt of this market by playing a less-desirable instrument, but it is a pervasive part of classical music culture that I am extremely dubious of. Reply Daniel Kwan April 12, 2018 THANK YOU!! THIS EXPLAINS ALL!! all caps off now. Reply Costa del Artlepool April 12, 2018 I like to think I wouldn't become such a greedy SOB under any circumstances, but who knows..? It's a terrible financial system we're immersed in, and it preys on human weaknesses. Reply James Marcin April 12, 2018 Replace all that talk of "art auctions" with "stock market" and I feel like it rings just as true. Regulated or not, it's all just a shell game for rich people. Lame. Reply Max Beddows April 15, 2018 And if the artist is dead that cuts out the "middle man" of the transactions. That's why artists become famous after their death. Reply monkeymilk April 17, 2018 So the artist gets the initial payout but some asshole business man gets 5 times as much 3 years later? Booo Reply bloated utopia April 17, 2018 i want to barf Reply ARTiculations April 17, 2018 One of the biggest challenges we do face at the AGO is that our collection is largely contributed by donors. Thus our collection is heavily Eurocentric. While there has been an effort to increase diversity among the collections over the last few decades it has also grown increasingly difficult to do so. I try to point this out to visitors on highlights tours. I still think we have a great collection and many works in the European collections are still interesting to explore, but I think it's important to point out the uncomfortable realities in our institutions, and maybe use this as an opportunity for discussion with visitors. Reply Twister915 April 17, 2018 That five million valuation thing is a massive cheat for this video. It's unlikely that would hold up under an audit."Fair market value" does not mean whatever someone you can find says it's worth. Reply orkid box April 18, 2018 I like what you said about it affecting the art that gets made. This is an important point. Artists get affected by the art market too. Reply Mr. Red Herring April 18, 2018 Maybe we should deregulate other areas as well instead of making it worst for everyone, more people could have the opportunity to free themselves from financing the Government. Less taxes for every citizen doesn't sound bad. Reply Aleksander K April 25, 2018 Holy fudge this was enlightening! Reply Jade Damboise Rail May 15, 2018 It's frustrating I have trouble seeling a painting for something like 100$ but there's some selling for billions. It's just a little frustrating. I just want to pay for my time and material so I can keep painting. Reply Lilith May 19, 2018 i'm on the same wavelength, sarah, i'm not a big fan of the art market either.. maybe that's the part that always pushed me away from fine arts and more toward illustration Reply Cere May 21, 2018 I wonder if some mechanism is on offer to somehow gaurantee ensure that art that is sold does not wind up in a freeport? Reply Nova Caress official June 8, 2018 This is why so many artists mix their shit in with their paint knowing full well it'll inevitably be treated with the same regard. Reply ahmed perez July 10, 2018 what is wrong with more millionaires every day? lol, that is a good thing, it is a desirable thing. Reply IAN THESEIRA September 13, 2018 hardness is good for wealth retention and ensuring that heard earned profits aren't soaked up and siphoned off, but not so good for penetrating new territory maybe. What new territory when you have everything you need where you are right? But forever? That's when being hard may backfire once again. Cheers Reply Reality is Fake September 16, 2018 The nexus of art and money will always be weird. It will always bother some people. I think if you try to fix it, it's just going to be weird in some other way. There's just too much subjectivity and emotional force involved. Reply Manas September 19, 2018 Intersting Reply Divertissement Monas September 20, 2018 What an eye-opener, I understood there was eye watering amounts of money in the art market. However, never knew how it worked to benefit the already wealthy! Here in the UK where 'austerity' measures have been put in place, the government is withdrawing funds from art. So art in the UK too will be dictated by what the art market stipulates. Not sure whether this has always been the case ever since artists in Europe were 'liberated' from having to work for patrons and hurled into the art market. Reply Norm Yip October 11, 2018 Thank you for posting this topic, something that I’ve only begun to understand recently, although from a less detailed description. It’s shadier than I thought. Kudos on the red bucket clip. Was it your idea? I think so. 😏😊😂 Reply The MA Show October 12, 2018 An auction is corrupt because people bid? Dumb… also, if it's not guaranteed to be a tax deduction than it's not a SCAM, you just think it's a scam be abuse it can be treated like any other investment and becomes tax deductible… dumb logic Reply fabian monge October 22, 2018 the more money rich people invest on art, the most artists will have benefit from it, Never mind the reasons why they invest in art, one can use this money to do the better that one can do. Reply Celina K November 3, 2018 Thumbnail?I need to know Reply PRIME November 5, 2018 How much is the artist even making from all these transactions? Reply Hailstormand November 11, 2018 Oooh. Somehow this makes me think of a probable Leverage episode. Reply dj586858 November 22, 2018 "Bleck" is right!!🤢 They are missing the point! Reply David B December 2, 2018 Cool video. Can you have an essay that shows all the good collectors and Capitalism does for the market. Didn't Madonna buy the entire show of Cindy Sherman? I believe a lot of that money went to the artist and also brought awareness to her work. It also has that liberal "Girl Power" angle that this channel loves. Put the puke bucket down. LOL. Reply fruitoson December 3, 2018 her voice is just so.. pretty… Reply greenatom December 4, 2018 These are the the circumstances whereby artists like Cy Twombly or Gerhard Richter can sell ridiculous garbage for vast amounts of money. They are gaming the system too. Reply revise hellenologophobic January 5, 2019 Somehow I think it odd that I like to paint or draw while listening to this channel. Reply MEGABLAMP January 6, 2019 It sounds like once paintings become financial capital. Those financiers might end up supporting it as cultural capital so that it can be worth more. Art critics and appraisers need to learn to divorce the cultural aspects of the art to the financial aspects of the art. I forget the name but there was a movie written about the guy who was pretty much a homeless heroin addict, though most artists are pretty similarly characterized. Its seemed to me that that might be the case. I mean patrons where the original supporters of artists were they not? Reply Paul B January 12, 2019 Excellent video. There is too little public discussion of these issues. Nobody interested in art is completely free of the effects of the market in artworks. It's long past time that the market was regulated. Reply Nashua Marbaniang January 18, 2019 I found a third way Builds own museum buys more art Never pay tax Can I be a billionaire now ? Reply Shpahtel Lapsta January 19, 2019 Why is this bad again? Minus the fact that most of those flipped and paraded paintings are modernist crap and deserve to be stored away anyway – what's the problem with this model? Sell, resell and deduct all you want. P.S. This is still a well made video. Reply RAsplez 98 January 24, 2019 They don't even try to hide money laundering anymore. Reply Andrew Blackadder February 3, 2019 Yet all that ancient Art sits in the Basement of The Vatican, but that Church still needs money.. Reply kshiftkometh February 22, 2019 That Leonardo is fake. It was coincidentally discovered by a da Vinci expert capable of producing forgeries (she restores his work). The composition is a mess, she stole details from other paintings and Leonardo was obsessed with anatomical proportion, something that painting's painter clearly doesn't care about one bit. If you look his head looks caved in at the top and he's looking down, popular from 19th century art on but during the Italian Renaissance, Jesus was looking UP unless on a cross! They mess up the shadows (neck sides), something Leonardo specialised in! Reply Conner Fields March 7, 2019 I cannot imagine myself as a rich man. Reply Conner Fields March 7, 2019 What are these Goddamn Freeports, are these like Swiss bank accounts or the Cayman Islands? (also….sorry God, did not mean to offend). Reply Al Cox March 9, 2019 Very Informative Tax Info…. Now I need a few Million/Billions💸💸💸 Reply Kristopher Jennewein March 22, 2019 So….really cool if we could get over this. The nut; I believe is that Art is more important than Money. Reply Kristopher Jennewein March 22, 2019 Thanks for making this video; I shared it out. Thanks for vomiting. Reply Ieuan Hunt March 22, 2019 The Yeti Reply Al Green - Light Through Glass March 24, 2019 Or public galleries could start buying talented unknowns at affordable prices….. Reply 113 DmG March 28, 2019 Sad. Reply J. Adán Herrera April 2, 2019 Let's be honest here, in the primary and secondary "market" Art+taxes =money laundering, fact. Reply BioHazardGround0 April 10, 2019 This is awkward, but I am Canadian. 3-4 years back the city I live in spent over 50000 on a giant blue circle. A blue circle. Thats all it is. Its like if you took a hoola hoop 20ft high and stood it up. I guess cities have to spend so much on art. Buuuuutt Im an artist and like wtf. Im sorry I hate looking at it. So lame. Reply Jupp Soetebier April 10, 2019 Wow, just wow. I mean, I kinda knew all this already, but you laid it out so perfectly that I have to… wait… baaaaarrrrrf. Reply Micheal Kelly April 13, 2019 The market is one thing….publicly unavailable art is another Reply reni April 14, 2019 As I understand it an artist who donates an art work to a charity sale can only deduct the price of the materials it took to create the art work from their taxes not the value of the work. Reply marvin raphael monfort April 17, 2019 yet another proof that being filthy rich is just being filthy, actually Reply PanDanyull XD May 6, 2019 0:31 very slick Reply Patrick Ennis Artist May 17, 2019 Yes Reply D. Gata July 14, 2019 Bullshit, rich people have hundreds of ways to evade taxes, it is not news, even worse than using art to evade taxes is to create foundations that promise to help poor children or with cancer lol ….. Reply Jude Rozario July 16, 2019 Your videos are worth more than the irrelevant art that you talk about most of the time. Came to my mind when the red spiral painting came up. Reply Marcel Moonen August 7, 2019 “Grown-ups like numbers. When you tell them about a new friend, they never ask questions about what really matters. They never ask: ‘What does his voice sound like?’ ‘What games does he like best?’ ‘Does he collect butterflies?’ They ask: ‘How old is he?’ ‘How many brothers does he have?’ ‘How much does he weigh?’ ‘How much money does he have?’ Only then do they think they know him. If you tell grown-ups, ‘I saw a beautiful red brick house, with geraniums at the windows and doves at the roof…,’ they won’t be able to imagine such a house. You have to tell them, ‘I saw a house worth a thousand francs.’ Then they exclaim, ‘What a pretty house!” – Antoine de Saint-Exupéry, The Little Prince Reply Owl Jones August 13, 2019 Liberals want everyone to be equal, as long as it's equally poor. More billionaires? Good for them, and good for all the jobs they create. Ps……someone should have fact checked your first 5 minutes for ya. Just saying. Reply SciFiPainter September 8, 2019 Painting is my passion, my obsession, in life. The art world, however, I very much loathe. Reply Add a Comment Cancel reply Your email address will not be published. Required fields are marked *Comment:*Name:* Email Address:* Save my name, email, and website in this browser for the next time I comment.