The End of the Art Connoisseur
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Publication 5392 (2-2020) Catalog Number 73942R Department of the Treasury Internal Revenue Service Overview
The Art Advisory Panel Of the Commissioner Of Internal Revenue Annual Summary Report for Fiscal Year 2018 (Closed meeting activity) Publication 5392 (2-2020) Catalog Number 73942R Department of the Treasury Internal Revenue Service www.irs.gov Overview Created in 1968, the Art Advisory Panel of the Commissioner of Internal Revenue (the Panel) provides advice and makes recommendations to the Art Appraisal Services (AAS) unit in the Independent Office of Appeals for the Internal Revenue Service (IRS). Chartered under the Federal Advisory Committee Act (FACA), the Panel assists by providing value recommendations regarding the acceptability of tangible personal property appraisals taxpayers submit to support the fair market value claimed on the wide range of works of art involved in income, estate, and gift tax returns. When a tax return selected for audit includes an appraisal of a single work of art or cultural property valued at $50,000 or more, the IRS examining agent or appeals officer must refer the case to AAS for possible referral to the Panel, unless a specific exception exists. The AAS staff supports and coordinates the Panel meetings, while the AAS appraisers independently review taxpayers’ appraisals for art works not referred to the Panel. The Panel provides essential information to help foster voluntary compliance. The information and recommendations play an important role in the IRS’s efforts to cost- effectively address the potentially high abuse area of art valuation. The panelists provide information, advice, and insight into the world of art which cannot be obtained effectively from within the IRS. The Panel does not duplicate work performed in the IRS. -
Art & Collectibles
Deloitte’s Art & Finance Panels - ArtCity 2020 Art & Collectibles 28 October 2020 Art & Collectibles Which wealth management service offerings meet UHNWI’s needs? MODERATOR Adriano Picinati di Torcello Director, Global Art & Finance Coordinator Deloitte Luxembourg Deloitte’s Art & Finance Panels | 28 October 2020 © 2020, Deloitte Tax & Consulting, SARL Public 2 Adriano Picinati di Torcello Director, Global Art & Finance Coordinator Deloitte Luxembourg PANELISTS Nannette Hechler-Fayd’herbe Micaela Saviano Marco Vulpiani Chief Investment Officer Partner Tax Partner-Financial Advisory, Head of International Wealth Management Deloitte USA Valuation, Modelling and Economics and Global Head of Economics & Deloitte Italy , Member of Deloitte Global Research, Crédit Suisse AG Valuation Executive Committee Philip Hoffman Jennifer Schipf Jackie Hess Founder & CEO Global Leader - Art Partner The Fine Art Group AXA Deloitte Private Leader Deloitte Switzerland © 2020, Deloitte Tax & Consulting, SARL Public 3 PANELISTS Jackie Hess Partner Deloitte Private Leader Deloitte Switzerland Deloitte’s Art & Finance Panels | 28 October 2020 © 2020, Deloitte Tax & Consulting, SARL Public 4 Deloitte Private in Switzerland ArtCity 2020 Deloitte Private in Switzerland Main segments Family office and high-net-worth individuals We believe differentiating the We help high-net-worth individuals (HNWI) and family offices needs of private businesses manage their investments, regulatory and compliance affairs. from the needs of large businesses assists our Private companies multidisciplinary professionals in We work with private companies who face a range of challenges that affect not only the success of the business enterprise, but recognising the opportunities also the professional and personal goals of their owners. We and challenges unique to private advise ambitious families and individuals; similarly we work with businesses. -
Project Report: Team 4 Predicting the Price of Art at Auction
Project Report: Team 4 Predicting the Price of Art at Auction Bhavya Agarwal, Farhan Ali, Prema Kolli, and Xiufeng Yang Department of Computer Science, Stony Brook University, Stony Brook, NY 11794-4400 {bhavya.agarwal,farhan.ali}@stonybrook.edu,{pkolli,xiuyang}@cs. stonybrook.edu http://www.cs.stonybrook.edu/~skiena/591/projects 1 Challenge An art auction is the sale of art works in a competition setting. Our primary goal is to predict the price of an art piece/painting in an art auction. We are focusing only on auctions, which occur in auction houses such as Sotheby's and Christie's. In this project, we try to predict the price of art to be sold at Sotheby's auction in London on 3 December 2014. We are trying to build a generic model, capable of predicting price of any piece of art to be sold based on a variety of features associated with an artist, auction house and the piece of art itself. There is a famous quote in the movie "The Monuments Men" where the actor George Clooney talks about the importance/significance of art. He says that wiping out any generation's art history is equivalent to wiping out the entire generation itself. "You can wipe out the entire generation, you can burn their homes to the ground and somehow they will still find their way back. But you can destroy their history, destroy their achievements and this is it they never existed. That is what we are exactly fighting for." Predicting the price of a painting in an art auction turns out be a challenging task as there are lot of functional dynamics involved in the whole auction process. -
HOW MIGHT CONTEMPORARY Art's Value Be Understood and Analysed
8 PARSE JOURNAL OW MIGHT CONTEMPORARY art’s Indeed, how might art’s conditions of display – in exhibitionary value be understood and analysed? What and relational formats — pre-empt and promote its valuation are the conditions that produce its value? in the newly-developed terms? Can art’s valuation still be What is the difference between the price separated diagnostically from other regimes of value at work of art and its value? These and other similar in current political, social and cultural milieu? Hquestions presuppose that art is, indeed, valuable — a sine These pressing questions cut to the quick of not only the qua non of art as such. But art’s value is a conglomeration of terms and logics of art’s circulation and exhibition, they also economic and historically-shaped symbolic factors, and these cut to the very conditions of art production as such — where factors promote and prolong the global circulation of artefacts it gets made, who makes it, what gets to count as art. The and at the same time profoundly shape the lives and working centrality of art’s market to its public dissemination impacts not methods of those who participate in art – dealers, auction simply upon artists’ support structures but also upon the ways houses, galleries, museums, educators, curators and their often in which their work is multiply valued. Moreover, if it is now unrecognised assistants, philanthropists, and not least of all, a banal truism that the art market plays a fundamental role in artists themselves. the commissioning and display of contemporary art outside of This issue of PARSE sheds light on the ways in which art’s the market itself — for example, through patronage, sponsor- market and operational conditions produce and distribute ship, or other necessary subsidy of the public sector — it is regimes of value. -
Fine Art Connoisseur
FRANK MYERS BOGGS | JEAN-LÉON GÉRÔME | MAINE’S ART | RACKSTRAW DOWNES | D. JEFFREY MIMS THE PREMIER MAGAZINE FOR INFORMED COLLECTORS AUGUST 2010 $8.95 U.S. | $9.95 CAN. Volume 7, Issue 4 Reprinted with permission from: TODAY ’S MASTERS ™ 800.610.5771 or International 011-561.655.8778. M CLICK TO SUBSCRIBE Caput Mundi (Capital of the World) By D. JEFFREY MIMS GH Editor’s Note: Born in North Carolina in 1954, D. Jeffrey Mims attended the Rhode Island THE FAÇADE OF THE AMERICAN ACADEMY IN ROME School of Design and Pennsylvania Academy of the Fine Arts. After using a grant from the Elizabeth T. Greenshields Foundation to copy masterworks in European museums, he stud - ied in Florence with the muralist Benjamin F. Long IV. For more than a decade, Mims main - tained studios in Italy and North Carolina, undertaking such major projects as a fresco for Holy Trinity Episcopal Church (Glendale Springs, NC), an altarpiece for St. David’s Episcopal Church (Baltimore), and murals for Samford University in Birmingham. In 2000, he opened Mims Studios in Southern Pines, NC, offering a multi-year course in the meth - ods and values of classical realist drawing, easel painting, and mural painting. If I could have my way in the training of young artists, I should insist upon their spending a good deal of time in the study and designing of pure ornament that they might learn how in - dependent fine design is of its content and how slight may be the connection between art and nature. — Kenyon Cox (1856-1919) The Classic Point of View: Six Lectures on Painting (1911) hat artist can visit Rome and not be impressed, if not over - W whelmed, by the magnificent monumentality of the Eter - nal City? It was here that the Renaissance matured and defined itself, demonstrating the fertility of the classical tradition and setting the model for centuries of elaborations. -
Problematic Provenance: Toward a Coherent United States Policy on the International Trade in Cultural Property
COMMENTS PROBLEMATIC PROVENANCE: TOWARD A COHERENT UNITED STATES POLICY ON THE INTERNATIONAL TRADE IN CULTURAL PROPERTY MARY McKBNNA* 1. INTRODUCTION The 1980s have seen United States policy gradually retreat from the trend, traceable from the United Nations Educational, Scientific and Cultural Organization Convention of 1970 ("UNESCO Conven- tion") through the much-discussed McClain decisions1 of 1979, toward * J.D., 1990, University of Pennsylvania Law School; A.B., 1983, Harvard University. 1 The McClain case resulted in two proceedings and two appeals, United States v. McClain, 545 F.2d 988 (5th Cir. 1977), reh'g denied, 551 F.2d 52 (5th Cir. 1977), and United States v. McClain, 593 F.2d 658 (5th Cir. 1979). In the first appeal, the defendants were convicted of theft under the National Stolen Property Act, 18 U.S.C. §§ 2314, 2315 (1970 & Supp. 1990) [hereinafter NSPA], for dealing in pre-Columbian objects exported from Mexico in violation of Mexican law purporting to vest title to all such property in the Mexican government. Articulating the theory underlying the con- victions, the court reasoned that, for purposes of the NSPA, which forbids the transpor- tation in interstate commerce or the receipt of stolen goods, illegally exported artifacts subject to such a national declaration of ownership are "stolen." The second McClain appeal resulted in a reversal of the substantive NSPA conviction (although the court of appeals sustained convictions for conspiracy) on the grounds that the particular statute upon which the Mexican government based its claim was too vague to satisfy United States constitutional standards for criminal proceedings. However, the decision left open the possibility that a person might be convicted under the NSPA for conduct like that of the McClain defendants under similar circumstances. -
Handbook on Judaica Provenance Research: Ceremonial Objects
Looted Art and Jewish Cultural Property Initiative Salo Baron and members of the Synagogue Council of America depositing Torah scrolls in a grave at Beth El Cemetery, Paramus, New Jersey, 13 January 1952. Photograph by Fred Stein, collection of the American Jewish Historical Society, New York, USA. HANDBOOK ON JUDAICA PROVENANCE RESEARCH: CEREMONIAL OBJECTS By Julie-Marthe Cohen, Felicitas Heimann-Jelinek, and Ruth Jolanda Weinberger ©Conference on Jewish Material Claims Against Germany, 2018 Table of Contents Foreword, Wesley A. Fisher page 4 Disclaimer page 7 Preface page 8 PART 1 – Historical Overview 1.1 Pre-War Judaica and Jewish Museum Collections: An Overview page 12 1.2 Nazi Agencies Engaged in the Looting of Material Culture page 16 1.3 The Looting of Judaica: Museum Collections, Community Collections, page 28 and Private Collections - An Overview 1.4 The Dispersion of Jewish Ceremonial Objects in the West: Jewish Cultural Reconstruction page 43 1.5 The Dispersion of Jewish Ceremonial Objects in the East: The Soviet Trophy Brigades and Nationalizations in the East after World War II page 61 PART 2 – Judaica Objects 2.1 On the Definition of Judaica Objects page 77 2.2 Identification of Judaica Objects page 78 2.2.1 Inscriptions page 78 2.2.1.1 Names of Individuals page 78 2.2.1.2 Names of Communities and Towns page 79 2.2.1.3 Dates page 80 2.2.1.4 Crests page 80 2.2.2 Sizes page 81 2.2.3 Materials page 81 2.2.3.1 Textiles page 81 2.2.3.2 Metal page 82 2.2.3.3 Wood page 83 2.2.3.4 Paper page 83 2.2.3.5 Other page 83 2.2.4 Styles -
Art & Finance Report 2019
Art & Finance Report 2019 6th edition Se me Movió el Piso © Lina Sinisterra (2014) Collect on your Collection YOUR PARTNER IN ART FINANCING westendartbank.com RZ_WAB_Deloitte_print.indd 1 23.07.19 12:26 Power on your peace of mind D.KYC — Operational compliance delivered in managed services to the art and finance industry D.KYC (Deloitte Know Your Customer) is an integrated managed service that combines numerous KYC/AML/CTF* services, expertise, and workflow management. The service is supported by a multi-channel web-based platform and allows you to delegate the execution of predefined KYC/AML/CTF activities to Deloitte (Deloitte Solutions SàRL PSF, ISO27001 certified). www2.deloitte.com/lu/dkyc * KYC: Know Your Customer - AML/CTF: Anti-Money Laundering and Counter-Terrorism Financing Empower your art activities Deloitte’s services within the Art & Finance ecosystem Deloitte Art & Finance assists financial institutions, art businesses, collectors and cultural stakeholders with their art-related activities. The Deloitte Art & Finance team has a passion for art and brings expertise in consulting, tax, audit and business intelligence to the global art market. www.deloitte-artandfinance.com © 2019 Deloitte Tax & Consulting dlawmember of the Deloitte Legal network The Art of Law DLaw – a law firm for the Art and Finance Industry At DLaw, a dedicated team of lawyers supports art collectors, dealers, auctioneers, museums, private banks and art investment funds at each stage of their project. www.dlaw.lu © 2019 dlaw Art & Finance Report 2019 | Table of contents Table of contents Foreword 14 Introduction 16 Methodology and limitations 17 External contributions 18 Deloitte CIS 21 Key report findings 2019 27 Priorities 31 The big picture: Art & Finance is an emerging industry 36 The role of Art & Finance within the cultural and creative sectors 40 Section 1. -
System Approach to Art Value in the Auction Market
Recent Advances in Circuits, Systems, Telecommunications and Control System Approach to Art Value in the Auction Market JOANNA BIALYNICKA – BIRULA Department of Market Analysis and Marketing Research Cracow University of Economics Rakowicka Street 27, 31-510 Cracow POLAND [email protected] www.karibm.uek.krakow.pl Abstract: In this article the concept of work of art value, that employs system approach to the auction market, has been presented. While treating the market as a system, respective elements of the system and their relationships have been identified. Sellers, buyers, auction institution as an agent, and works of art as the objects of exchange have been identified among the elements of auction market system. The structure of the auction market system, besides the elements already mentioned, includes relationships between the elements. The article also takes up the issue of market subsystems and environment that the system of art auction market functions in. System approach to the market allows multi-aspect consideration of the issue of artwork’s value. Thanks to the system approach to work of art value, a variety of value types create one whole. Market value (price), value for the seller, artistic value, aesthetic value, historic value, estimate value, value for the customer, utility value, aesthetic value, hedonistic value, common/private value, collection value, emotional value have been placed in the market system. Environment of art auction system has been divided into: close environment, connected with art market (not only auction market), and distant environment that includes social, cultural, economic, religious factors influencing the system and thus the value of works of art. -
(FMV) of Guggenheim Founding Collection? If the Transparency of An
Sotheby's Institute of Art Digital Commons @ SIA MA Theses Student Scholarship and Creative Work 2019 What are the challenges of establishing the Fair Market Value (FMV) of Guggenheim Founding Collection? If the transparency of an asset value is possible on Non-Profit Financial earY Report, how can the FMV preserve the continuity of public art patronage, in spite of, deaccession artwork from the Guggenheim’s collection being sold on the auction market? Leng Ho Follow this and additional works at: https://digitalcommons.sia.edu/stu_theses Part of the Contemporary Art Commons, Modern Art and Architecture Commons, and the Museum Studies Commons Sotheby’s Institute of Art NY, Final Master Thesis 2019 Ho Leng, MAAB, [email protected] Master Thesis Core Enquiry: What are the challenges of establishing the Fair Market Value (FMV) of Guggenheim Founding Collection? If the transparency of an asset value is possible on Financial Year Reports, how can the FMV preserve the continuity of public art patronage, in spite of, deaccessioning artwork from the Guggenheim’s collection being sold on the auction market? Abstract: A collector’s financial interest in purchasing works of art is often motivated by potential return on investment. These collectors have heard countless stories of others gaining huge financial returns after consigning rare works of art from a museum collection. In recent decades, rising debates on the capitalizing of museum collections to gain financial assets allude to long-term negative repercussions. Those opposed postulate that art patron will lose trust in a museum’s ability to care for its publicly-owned collections. -
Art As an Asset
Art as an Asset Art and the Collector European Fine Art Foundation Wealth Strategies Group (TEFAF) categorizes art as Sarah D. McDaniel, CFA This discussion intends to heighten follows: 1. Classical Antiquities Eliana Greenberg awareness of the significant role art and Ancient Art, 2. Antiquities, 3. Liz Gully may play in the context of a Old Masters, 19th Century and collector’s overall wealth. Impressionists Works, 4. Modern The Blue Rider Group at Generally, a collector may segment Art, 5. Post-War and Morgan Stanley wealth between financial assets Contemporary Art, 6. Prints, Maryanna McConnell including stocks, bonds and real Precious Books and Maps, 7. La Lauren Sparrow estate from other possessions such Haute Joaillerie and 8. Design Dan Desmond as art. This separation is Objects 1. For the purposes of this sometimes the result of art being discussion, art is meant to considered a personal interest encompass as broad a rather than an asset. Additionally, categorization as possible and the historical opacity and may include the following which is inaccessibility of the art market by no means a complete list or may also be contributing factors. representation: paintings, However, these factors have and sculpture, jewelry, cars, furniture, are being alleviated. It is because wine and collectibles. of this increased transparency that a collector should carefully The Art Market consider the role of art on a balance sheet in addition to the The art market has evolved from salient implications of owning art. patrons commissioning works of art based on the artist’s talent and The definition of art varies reputation in the 17th century to depending on who answers the the emergence of auction houses question. -
Econometric Fine Art Valuation by Combining Hedonic and Repeat
Econometric fine art valuation by combining hedonic and repeat-sales information John W. Galbraith Department of Economics, McGill University Douglas J. Hodgson ∗ D´ept.de sciences ´economiques, Universit´edu Qu´ebec `aMontr´eal December 11, 2017 Abstract Statistical methods are widely used for valuation (prediction of the value at sale or auction) of a unique object such as a work of art. The usual approach is estimation of a hedonic model for objects of a given class, such as paintings from a particular school or period, or in the context of real estate, houses in a neighborhood. Where the object itself has previously sold, an alternative is to base an estimate on the previous sale price. The combination of these approaches has been employed in real estate price index construction (e.g. Jiang, Phillips and Yu 2015); in the present context we treat the use of these different sources of information as a forecast combination problem. We first optimize the hedonic model by considering the level of aggregation that is appropriate for pooling observations into a sample, then apply model-averaging methods to estimate predictive models at the individual-artist level, in contexts where sample sizes would otherwise be insufficient to do so. Next we consider an additional stage in which we incorporate repeat-sale information, in a subset of cases for which this information is available. The results are applied to a data set of auction prices for Canadian paintings. We compare the out-of-sample predictive accuracy of different methods and find that those that allow us to use single-artist samples produce superior results, that data-driven averaging across predictive models tends to pro- duce clear gains, and that where available, repeat-sale information appears to yield further improvements in predictive accuracy.