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If Alice buys art from Bob, and that art goes up in value due to the open-market activity of anonymous [Carol?, ...], then Alice can donate that now expensive a

by jerry1979 6y ago

If Alice buys art from Bob, and that art goes up in value due to the open-market activity of anonymous [Carol?, ...], then Alice can donate that now expensive art to a digital museum for a tax write off. Where could Alice get the NFTs appraised? Is the open market activity sufficient? It's almost like the NFT system allows proles to do fancy tax write-offs like their bourgeoisie cousins.

d-sk 6y ago
NFT appraisal is a grey area if it is anything like the art market, and yes it can be used to defraud. https://www.latimes.com/local/la-me-irs2mar02-story.html https://www.latimes.com/local/la-me-irs2mar02-story.html
- jerry1979 6y ago
  Thank you for posting this article. I had not come across this one in my limited research. >It is appraisers, not museums, who determine the value of art for donors. But the U.S. attorney’s office in Los Angeles is investigating whether museum officials furthered the scheme by knowingly accepting donations of overvalued art from suspect dealers and collectors over a decade, according to affidavits filed in January. Looks like software might eat this too. Anyway, I think I naturally tend to support the Liberal Project for better or worse, but today's streams of turbulence feel refreshing on tired feet.
kjrose 6y ago
Why does it feel to me like a way to launder money. Its not like the art market hasn't been used for that for centuries.
heliodor 6y ago
Do people donate for the tax write-off or do they donate and happen to enjoy an additional tax write-off benefit?
- 8fGTBjZxBcHq 6y ago
  Rich people absolutely do donate things for the tax writeoffs. Land and art especially can have on-paper values significantly different from what you could actually receive from selling them at a given time. I can't find it now but a few months ago there was an interesting article going around about this written by an accountant. A large part of the work of accounting is matching different appraisal methods to best fit the needs of the person at any given time. Donations definitely factor into this.

d-sk 6y ago

NFT appraisal is a grey area if it is anything like the art market, and yes it can be used to defraud. https://www.latimes.com/local/la-me-irs2mar02-story.html https://www.latimes.com/local/la-me-irs2mar02-story.html

jerry1979 6y ago
Thank you for posting this article. I had not come across this one in my limited research. >It is appraisers, not museums, who determine the value of art for donors. But the U.S. attorney’s office in Los Angeles is investigating whether museum officials furthered the scheme by knowingly accepting donations of overvalued art from suspect dealers and collectors over a decade, according to affidavits filed in January. Looks like software might eat this too. Anyway, I think I naturally tend to support the Liberal Project for better or worse, but today's streams of turbulence feel refreshing on tired feet.

kjrose 6y ago

Why does it feel to me like a way to launder money. Its not like the art market hasn't been used for that for centuries.

heliodor 6y ago

Do people donate for the tax write-off or do they donate and happen to enjoy an additional tax write-off benefit?

8fGTBjZxBcHq 6y ago
Rich people absolutely do donate things for the tax writeoffs. Land and art especially can have on-paper values significantly different from what you could actually receive from selling them at a given time. I can't find it now but a few months ago there was an interesting article going around about this written by an accountant. A large part of the work of accounting is matching different appraisal methods to best fit the needs of the person at any given time. Donations definitely factor into this.