Everything an Art Collector Needs to Know in the Tax Season

By Juliette Yuan. March 29th, 2021. New York.

March 24th, 2021, Bank of America Private Bank Art Services hosted an engaging panel discussion concerning the spring 2021 art market trends for collectors. The panel provided "an insider's view of the major macro trends that would drive the art market in 2021 and key takeaways to assist art collectors to navigate swiftly through the current tides and forecasted trends." (Art Market Update: Spring 2021, Bank of America, Private Bank, Art Services). Topics included:

2020 art market and auction update

2021 trends and innovative business transactions

Timely considerations for collectors

A comprehensive report on the art market moves in "an unprecedented period of transition and innovation" was published on the Bank of America's website following the panel. The report pointed out the thorny issues that the current NFT craze is forcing art, law, and tax advisors to confront: "While NFT art may be a fad, the Christie's sale signals that the secondary market for intangible assets has now arrived. The sale leaves many open questions about long-term market implications. However, for the moment, the status of owning digitally native assets for young tech wealth can be more significant than owning a Picasso (and now almost as expensive)."

Source: Bank of America Art Services, January 2021

What do Bank of America's "open questions about longer-term market implications" include? For the year 2021, the biggest headache that art advisors, attorneys, and accountants confront is the taxati