February 3, 2022
Source: Money Wise
Photo / Image Source: Abstract Watercolor M3 - Shidonna Raven Fine Art & Giclees.
Copyright. All Rights Reserved.
Looming taxes and inflation may push investors toward alternative investments. One of the many battles fought out in the United States Senate around social spending bills last year focused on how the government would pay for the proposed services.
One proposed rule raised a red flag for America’s billionaires. The so-called billionaires’ tax, which the Associated Press estimated would affect less than 1,000 people, requires investors with more than $1 billion in assets to pay taxes on gains in stocks and other assets even before the holdings are sold.
The tax ultimately wasn’t included in the Build Back Better Act passed in November 2021. But suggestions from several representatives in Congress to raise taxes through other moves — including increasing the corporate tax rate, rolling back tax cuts from the 2017 Tax Cuts and Jobs Act or increasing the capital gains tax — are raising red flags for the richest Americans.
It may be affecting where they’re putting their money.
Between the looming possibility of higher taxes and pervasive predictions of a stock market downturn instigated by inflation and interest rates, some investors are turning to alternatives to help hedge their investments.
Here are a few examples of investors and business owners in the U.S. putting their money into contemporary fine art.
1. David Geffen: $2.3 billion David Geffen’s prowess spans art genres: The native New Yorker made his riches co-founding Asylum Records, Geffen Records and DreamWorks. And he owns the largest art collection of any American (second-largest in the world), according to The Collector. Geffen’s an avid collector of post-war American art in particular.
2. Edythe and Eli Broad: $2.2 billion Along with her husband Eli, art collector and philanthropist Edythe “Edye” Broad has collected about 2,000 pieces of art, according to the LA Times . Edye is an art lover, supporting arts initiatives through The Broad Foundations and opening The Broad art museum in 2015 to offer free admission to folks in Los Angeles to its collection of contemporary art.
3. Steven Cohen: $1 billion Steven Cohen is a legendary hedge-fund manager who only started seriously investing in contemporary art about 20 years ago.
He’s famous for buying art by the biggest-name artists, including Jackson Pollock, Pablo Picasso and Andy Warhol.
4. J. Tomilson Hill: Unknown
J. Tomilson Hill’s art collection is one of the top in the world, reports CNBC.
Though the billionaire hedge fund manager doesn’t believe in buying art with the expectation of a return, he nonetheless had a keen eye for artworks that have appreciated over time.
Hill’s top secret for buying great art? Buy what you love.
Which space are you collecting for business or home? Is it investment? How will you save on taxes? Becoming a Benefactor and making a donation is another way to save during this tax season. Just click below to donate at a level that will be a tax benefit to you and learn more about the benefits of being a Benefactor. Thank you. Which Shidonna Raven Fine Art or Giclee will you choose?
Share your comments with the community by posting them below. Share the wealth of information with your friends and family by sharing this article with 3 people today. As always you are the best part of what we do. Keep sharing!
Comments