Tax Time with the art world’s tax expert Steven Goldglit
GOLDGLIT & COMPANY, NEW YORK BASED CERTIFIED PUBLIC ACCOUNTANTS, SPECIALIZES IN THE ACCOUNTING AND TAX CONCERNS OF INDIVIDUAL CREATIVE ARTISTS AND ART-RELATED BUSINESSES. ORIGINALLY FOUNDED BY HIS FATHER KEN GOLDGLIT, STEVEN, MANAGING PARTNER OF THE FIRM, HAS CONTINUED IN HIS FOOTSTEPS, PROVIDING SERVICES THAT OFFER EXPERTISE IN THE SPECIAL FIDUCIARY AND TAX CONSIDERATIONS AND CONCERNS OF ARTISTS, GALLERISTS, DEALERS AND DESIGNERS, EVERYONE, FOR THAT MATTER, IN THE FINE ARTS INDUSTRY AND OTHER CREATIVE FIELDS.
STEVEN, WELCOME TO THE LRFA BLOG. THANK YOU SO MUCH FOR TAKING THE TIME TO CONTRIBUTE. PLEASE TELL US ABOUT THE HISTORY OF THE FIRM.
Goldglit & Company LLP was founded in 2011 as a Partnership between my father, Ken, and myself. It is the successor firm to KL Goldglit & Co. that my father founded in the 1980’s. The practice started with a broad assortment of art-related clients and has expanded from this base to our current position in the art world today. As the art market has continued to grow and expand, we continue to grow. With the current influx of European galleries into the NYC art market, we have taken on an international client base as well.
HOW DID THE FIRM INITIALLY DECIDE TO FOCUS ON THE ART WORLD? APPROXIMATELY HOW MANY CLIENTS DO YOU REPRESENT THAT ARE INDIVIDUALS VERSUS CORPORATIONS? WHAT IS THE BREAKDOWN BETWEEN ARTISTS, ART GALLERIES, AND OTHER CREATIVE FIELDS SUCH AS ARCHITECTURE, DESIGN, AND PUBLISHING.
My father’s first art client was Leo Castelli and the practice expanded from there. Leo felt it would be great if his accountant also was the accountant for the artists the gallery represented as it would make business dealings very smooth. We have followed this principle to date as we work with many of the artists our gallery clients’ exhibit. Most of the gallery clients are either Corporations or Partnerships, but the artists are almost always self-employed as a single member LLC (best for income tax and estate tax planning). As we work with many more artists than galleries, the majority of our clients is individual tax reporters. Between galleries, artists and art dealers, they account for approximately 80% of our total clients. We have other creative type clients – architects, writers, graphic designers and event planners. Every now and then we get a client who not involved with the arts or design fields, but it is not often!
WHAT PROMPTED YOUR DECISION TO FOLLOW IN YOUR FATHER’S FOOT STEPS?
I graduated with a BS degree in finance from the University of Maryland and thought I would become a successful bond trader. When I was interviewing and focusing on a company and a position, the stock market crash of 1987 occurred and my potential jobs were all put on hold or terminated. This was a very scary moment for me and I decided, at my father’s urging, to get my Masters Degree in Tax and Accounting which I completed at LIU in 1990. After 2 years at Price Waterhouse doing audit work, my father asked me to join his firm – he was not well – and I accepted and have been there ever since!
HOW WOULD YOU DESCRIBE THE DIFFERENCES AND SIMILARITIES OF THE FIRM WITH WHICH YOU WERE AFFILIATED BEFORE JOINING GOLDGLIT & CO.?
My time at Price Waterhouse – the largest of the Big 8 accounting firms when I joined – was very productive. I learned a great deal about how companies operate and spent a lot of time engaging with company management to broaden my abilities. The managing partner of PW was very happy with my work and I was on a path to success at PW but I began to lose interest in audit work and decided I wanted to focus more on small business and tax matters. In the end, I was happy at PW with what I learned, and it helped make me a better CPA.
THIS IS A PERIOD FRAUGHT WITH TAX DEADLINES AND FILINGS BUT, AS YOU CAN SEE, STEVEN IS VERY ENGAGED IN WHAT HE DOES AND WE WELCOME ANY AND ALL RELATED QUESTIONS. IN THE NEXT LRFA POST, WE WILL LEARN MORE ABOUT THE FIRM AND HOW TO BEST PLAN DURING THE YEAR FOR TAX TIME!