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This implies that donated art basically has an arbitrary valuation (set by "experts" based on some not really free or transparent "market"). Is this true? How i

• mdorazio 8y ago
  See here [1]. It's based on qualified appraisal and/or valuation of similar works at known auctions. [1] https://www.journalofaccountancy.com/issues/2010/jul/20092096.html https://www.journalofaccountancy.com/issues/2010/jul/2009209...
• duado 8y ago
  If Pierre's paintings are being exchanged regularly by a bunch of hedge fund guys for $20 million each, isn't $20 million the market price of a different, arbitrary, painting from Pierre? It isn't really a problem for other assets because they don't have the museum donation market that's key to the scheme working. You can't find a charity who is looking for superyacht donations.
  • eeZah7Ux 8y ago
    > isn't $20 million the market price Not at all: to have a "market" you need buyers, sellers and goods to be fungible. In your example buyers and sellers are only 0.000001% of humanity: other people cannot afford to play this game. Also the goods are unique. Brand new paintings would not be sold by the author him/herself at that price 99% of the time. They skyrocket in value only when sold between billionaires. https://en.wikipedia.org/wiki/Market_(economics) https://en.wikipedia.org/wiki/Market_(economics)