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Selling Artwork Received by Gift - Income/Not?

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jcadwell2

Junior Member
Over the past few years we have been the recipients of antique artwork from inlaws. Recently we have decided to start a part-time practice and are considering the sale of a few pieces to use as "seed" money. If sold, are we required to pay tax? The "donors" (parents) paid no tax in the transfer.
 


LdiJ

LdiJ

Senior Member
jcadwell2 said:
Over the past few years we have been the recipients of antique artwork from inlaws. Recently we have decided to start a part-time practice and are considering the sale of a few pieces to use as "seed" money. If sold, are we required to pay tax? The "donors" (parents) paid no tax in the transfer.
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Your "basis" in the artwork would be the "basis" of the family member who gifted it to you.

If you sell it for a price higher than "basis" you are subject to capital gains tax on the difference between the basis and the sales price.

Consult a tax attorney before making a sale.
 
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