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THE COMPLETE
GUIDE TO
LIMITED EDITION ART PRINTS
How to Identify, Invest & Care for Your Collection
by: Jay Brown |
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CHAPTER 16
- DEATH AND TAXES |
When Artists “Kick the Bucket”
If artists only knew how many collectors are
just sitting back in their easy chairs waiting for them to “kick the bucket”
they’d probably just die! OK, bad joke. Still, collectors do assume that when an
artist dies the value of the artist’s prints will increase.
In theory, the death of an artist will play a part in
the supply and demand equation. Unless the artist has some ghostly ability to
paint from the hereafter, production of paintings will cease. Should the artist
be popular and in demand at the time of his or her death, then a mad scramble
for prints is likely to ensue and an immediate increase in prices will result.
But, as time goes on, the collector demand will end as the prices rise and the
promotion generated from new releases will end as well. Then what happens?
Without supply of product and without collector demand, the market has no reason
to get excited. The market dies along with the artist and prices decline.
The art market will always be a market of promotion.
When publishers can no longer realize profitable results for themselves, they’ll
stop promoting. That’s basic business economics. And, when the publisher runs
out of inventory, the market will have lost two key players — the artist and the
publisher.
If you are truly investing in the work of an artist for
resale and the artist dies, be prepared to sell quickly, usually within a few
months. If you choose to hold on for greater opportunity, you’re likely to be
very disappointed.
The Production of Prints By a Deceased
Artist
Many artists paint for years before their
works are put into print, creating a backlog of viable print imagery. And,
should they die unexpectedly, occasionally some of that work can still be
printed if the artist’s family, who assumes the copyrights, agrees to sell those
rights to a print publisher.
Recently the offset lithographic art world lost two
very respected artists, both in their prime — Alan Maley and Stephen Lyman.
Maley, known for his impressionistic portraits of turn-of-the-century regalia,
owned his own publishing company, Past Impressions. Upon his death in the early
1990’s, the family continued his limited-edition print tradition and they still
release a couple of new works every year. The releases are still numbered as
before; however, the signature used is the one of Maley’s wife, Pamela.
Stephen Lyman passed away in the mid-1990’s in a tragic
hiking accident at age 38. Known for his paintings of wildlife, mountains and
campfires, Lyman is one of the most collected artists of our time. Since his
death, a number of limited editions have been released by his publisher, The
Greenwich Workshop, and Lyman’s wife, Andrea, now signs the works on her
husband’s behalf.
The signature of the spouse has not always been the
standard. When famed wildlife artist Ned Smith passed away, his works continued
to be released with a gold replica signature. There have also been a number of
instances where no prints were released after the artist’s death. The decision
is the family’s to make, as the holder of the artist’s copyrights.
Charitable Prints and Tax Deduction
The use of art to raise money for non-profit
organizations has long been a tradition. Wildlife artists have been at the
forefront of these generous contributions — raising millions of dollars for the
World Wildlife Fund, Ducks Unlimited and National Wildlife Federation by giving
a portion of the revenue generated from sales of select print releases. The
collectors often are involved in the excitement, and know that when they make a
purchase, a worthy cause benefits. But many collectors are confused about
whether there is a tax advantage since their purchase price went to charity.
Unfortunately, the answer is no.
The person who ultimately makes the donation is the
actual recipient of the tax break. So, if the donation was made by the artist,
he’d get the deduction and if the donation was made by the publisher of the
print, then they would. What it really boils down to is who signs the check
written to the organization.
You might wonder why, if there isn’t any benefit for
the collector, would anyone even need to know about the donation? Well, when an
artist or publisher participates in this type of program, they can create
tremendous publicity for worthy non-profit groups. This publicity can often lead
to additional, but unrelated donations and those who generously donate will
enjoy a tax benefit.
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