Barron's recently posted on the usefulness of this legal art reference guide, and notes that one of the main updates for the 4th edition is a chapter on art as an asset class. There are also important templates of legal forms, chapters on appraising and authentication, auctions, art transactions, taxes and estate planning and museums.
I have the 3rd edition in my library, and debated on if I should purchase the 4th edition. I found a great deal on Amazon for $184.00 which made the decision easy. Click HERE to view on Amazon, (NOTE: now showing out of stock and a purchase price of $295.00, which is the publisher price).
There is much information for the appraiser to review and incorporate into their practice, including a sample contracts for both appraising and art advisory. Some of the content applies directly to an appraisal practice, yet there is an abundance additional legal information and case law which is a good source of knowledge for the appraiser to have. If you deal in high value property, Art Law is an excellent resource to have.
Barron's reported on Art Law
Source: Barron'sCollectors of art may want to peruse the latest edition of Art Law: The Guide for Collectors, Investors, Dealers, & Artists. Originally written in 1989 by husband and wife team, Ralph Lerner and Judith Bresler, Art Law is considered the gold standard for navigating the world of art from legal, business, financial, tax, and estate planning perspectives.
The previous edition of the book was published in 2005. One major development in the art world that’s picked up since then, Bresler and Lerner claim, is the treatment of art as an asset class. That’s why this edition includes a chapter devoted to parsing out the differences between an art investor and an art collector, murky waters Penta recently tried to traverse. Such a distinction comes into play in a new section that explains how to use the Internal Revenue Code’s Section 1031 to sell appreciated art and use the full proceeds to buy other works, in order to defer paying capital gains tax on the sale.
And because of the art market’s overall skyrocketing values, it’s a financial risk not to understand the tax codes that apply when mixing art with money. When espousing the importance of an art buyer’s due diligence measures, Bresler lamented, “it’s astonishing to me that when you buy a work of art, even if you’re dropping 6 or 7 or 8 figures, that you get a one-page invoice from the dealer, and that’s it. You get a lot more paperwork when you’re buying a car.”
True, but there is a benefit to that simplicity as well – the art market remains one of the last remaining unregulated markets in the world. But that also means that collectors have to do their own due diligence and keep their eyes peeled. To cover your bases when buying and selling art, it might be wise to have this comprehensive legal treatise of the art business sitting on your bookshelf.
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