Do you want to use your IRA to help a charity, but also benefit your heirs? Instead of leaving your IRA directly to your chil...Read more
Heirs and IRS Reach Agreement on Unsaleable Artwork Valued at $65 Million
- April 8th, 2013
How much is something worth if it can never be sold? When the children of art dealer Ileana Sonnabend inherited her valuable collection of artwork in 2007, among the pieces was a ground-breaking “combine” by Robert Rauschenberg titled “Canyon” (pictured right).
The children paid $471 million in federal and state estate taxes on their mother’s estimated $1 billion collection, but they did not think they had to pay any tax on “Canyon.” The 1959 work, it turns out, can never be sold because it includes a stuffed bald eagle. Bald eagles are under federal protection and selling or trading one, even if it is part of a famous work of art, is a crime.
Local Elder Law Attorneys in Ashburn, VA
Needham Mitnick & Pollack, PLC
Judith Mtinick is well known for acting as a guardian, conservator, trustee or agent on behalf of clients or by court appointment. This experience gives her a wide perspective and extensive practical knowledge that she uses when advising clients in drafting their planning documents. Her experience, as a court appointed...
Ron M. Landsman, P.A.
Ron M. Landsman has been practicing elder law since 1983, before it was known as elder law, originally with Landsman and Laster, Washington, D.C., then Landsman, Eakes and Laster, also in Arlington, VA, and since 1990 in his own practice in Montgomery County, Maryland. He has been among the most active members of the...
Hale Ball Carlson Baumgartner Murphy PLC
Jean Galloway Ball is certified in Elder Law by the National Elder Law Foundation. She is a 1977 honors graduate of the National Law Center, George Washington University, and she did her undergraduate work at the University of California at Berkeley, graduating Phi Beta Kappa in 1971. She is admitted to practice in Vir...
The Internal Revenue Service (IRS), however, saw things differently and appraised the work at $65 million. On that basis, the IRS said the estate owed $29.2 million in taxes plus another $11.7 million in penalties.
The children and the IRS have finally reached an agreement: the IRS will drop the tax assessment on the condition that the children donate “Canyon” to a museum and claim no tax deduction for the donation.
After a contest between two major New York City cultural institutions -- the Museum of Modern Art and the Metropolitan Museum of Art -- over who will get Rauschenberg’s masterwork, the children have decided to donate it to the Modern. As the New York Times put it, “the eagle has now landed.”
Last Modified: 04/08/2013