Ellery Kurtz, dealer and appraiser of American Art, on the collector profile

Edward Hopper
Early Sunday Morning
Whitney Museum of American Art

IN JANUARY 2018, SEPH RODNEY, WRITING FOR HYPERALLERGIC.COM, ASKED AND ANSWERED “IS ART MUSEUM ATTENDANCE DECLINING IN MANY MUSEUMS ACROSS THE US?”  THERE ARE SIGNS THAT ATTENDANCE IN MANY MUSEUMS ACROSS THE COUNTRY IS SLOWLY FALLING BUT THE REASONS WHY ARE STILL TO BE DETERMINED. ART AND CULTURE MUSEUMS MAY BE IN TROUBLE. STATISTICAL EVIDENCE COMING OUT OF THE SCENE IN BALTIMORE, WHICH SEEMS TO BE FINDING CORROBORATION NATIONWIDE, CONVEYS A NARRATIVE OF MUSEUM VISITING BEING ON THE DOWNTREND.

THERE IS EVIDENCE THAT PEOPLE ARE BECOMING LESS INCLINED TO VISIT MUSEUMS AND GALLERIES, AND FOR THOSE OF US WHO ARE INVESTED IN THESE INSTITUTIONS AS ONE OF THE KEY BULWARKS AGAINST THE ENCROACHING COLONIZATION OF CIVIC SPACE AND ENGAGEMENT BY THE RELENTLESS COMMODIFICATION OF EXPERIENCE,THIS IS DISPIRITING NEWS.

THE GALLERIES, EXCEPT FOR A HANDFUL OF “UBER-GALLERIES” SUCH AS DAVID ZWIRNER, PACE AND GAGOSIAN ARE EXPERIENCING A SIMILAR DECLINE OF VISITORS, AS REPORTED IN ARTNET IN JULY 2018 BY RACHEL CORBETT.

TODAY, DEALERS SAY THEY NO LONGER VIEW PHYSICAL GALLERIES AS THE PRIMARY SITE OF SALES AND NETWORKING. INSTEAD, THEY NAME ART FAIRS AS THE NUMBER ONE VENUE FOR MEETING NEW CLIENTS, FOLLOWED BY THE INTERNET, ACCORDING TO TEFAF’S 2017 ART MARKET REPORT. NEARLY A THIRD OF DEALERS EXPECT TO DO EVEN FEWER SALES AT GALLERIES IN THE FUTURE, THE REPORT SAYS—AND THEY EXPECT GREATER DROPS IN THIS AREA THAN IN ANY OTHER, INCLUDING PRIVATE SALES, AUCTIONS, ONLINE SALES, AND FAIRS.

https://hyperallergic.com/421968/is-art-museum-attendance-declining-across-the-us/

https://news.artnet.com/market/foot-traffic-galleries-new-york-1318769

IN TODAY’S LRFA BLOG POST, AMERICAN ART GALLERIST AND APPRAISER ELLERY KURTZ WILL ADD HIS INSIGHT TO THE CURRENT TREND AS IT APPLIES TO THE AMERICAN MARKET.

Robert Henri
Mary Fanton Roberts
Metropolitan Museum of Art

ELLERY, WELCOME BACK!

HOW DO YOU ACCOUNT FOR THE DOWNWARD TREND IN THE AMERICAN ART MARKET AND DO YOU SEE IT REBOUNDING AND WHY OR WHY NOT?

Younger generations want more modern material. Today’s younger generations of the Millennials, GenX are a sharing society.  They rent rather than own, whether it is a place to live or a car.  They enjoy without actually possessing.  Galleries and museums put their inventory and exhibitions online which stops people from actually going to see the artwork.  If you are looking for…say a Robert Henri painting, you don’t have to physically go from gallery to gallery anymore.  You only need to look at various websites to see who actually has something available.  This is, in my opinion, one of the things that affects the market most. It stops collectors from experiencing the true thrill of the treasure hunt.  Walking into a gallery and “discovering” a painting on the wall or in a back room stacked among others.  You may find your Henri on a website, but you miss seeing the amazing George Luks that the gallery has not yet put on its site or has held back for one reason or another. You miss seeing the texture, brushstrokes, true colors, and impact of size. It is a total disconnect from the paintings themselves.  The acquisition of a work of art should be purely personal and up close experience.

George Luks
Street Scene (Hester Street)
Brooklyn Museum

WHAT WOULD YOU ADVISE A YOUNG EMERGING COLLECTOR IN TERMS OF COLLECTING AMERICAN ART?

How do we get young collectors interested when it takes enormous amounts of money to buy works of quality?  That is a really tough question.  Let’s say you are old enough and have enough money to start a collection.  Upon leaving your local museum you are inspired to collect Hudson River School paintings.  But where do you find such quality anymore?  The one or two examples of a painting by say Bierstadt, or Gifford, or Heade, that come to market are not usually the quality you just saw at the museum.  Instead they are second or third-rate works. 

Stanford Gifford
Sunset on the Hudson
Wadsworth Atheneum

If you want a first-rate work you have to wait, sometimes years and if you are lucky enough to be notified by a dealer that such a work is for sale ahead of every other collector that the dealer has already established relationships with, then you will need to quickly marshal your finances to make the leap.  Where does the next painting for your collection come from?  You like modern work? You want an oil painting by Edward Hopper? Good luck. With less than a few dozen still in private hands, and some of those already promised to a museum, you may never get a chance.  What is a young or new collector going to do?  Turn their attention to some other field. 

So I do not see the market rebounding regardless of a return to more affluent times. Dealers in American Art will become like dealers in Old Master paintings with fewer and fewer as availability of great works lessens.

Martin Johnson Heade
Sunset, A Scene in Brazil
New Britain Museum of American Art

WHICH AMERICAN ARTISTS DO YOU FEEL ARE MARKET-PROOF AND WILL SURVIVE AND BE VALUABLE DESPITE A DOWNWARD TREND?

I’m not sure if I would say that any artist is market-proof.  I have never thought of value in that manner.  That would be tantamount to saying that I think the price of IBM will always stay the same or go up.  We all know how that goes.  But there are artists whose reputation is untouchable and in general have seen a remarkable rise in price over the almost fifty years I have been in the art world. For instance, large landscapes by Albert Bierstadt would hardly fetch $100,000 fifty years ago.  Today a large luminist painting by the artist would handily bring a million dollars or in some cases multi-millions.  The same could be said of Edward Hopper, Winslow Homer, John Singer Sargent. But I am talking about iconic paintings by the most famous artists America ever produced.

Winslow Homer
The Gale
Worcester Museum

What seems to be moving in a positive way are modernism, illustration and post-war paintings. But if I were to give any advice to any collector young or old, new to the game or an old hand, it would always be, provided you have fallen under the spell of the painting, to spend more than you think you can afford if the artwork is significant for the artist.  Stretch a little because those are the works that bring the greatest pleasure. 

IN OUR NEXT LRFA BLOG POST, ELLERY WILL SHARE HIS EXPERTISE ON THE ART OF THE APPRAISAL, A HIGHLY RESPECTED FIELD THAT, WHEN DONE WELL, RELIES ON A GREAT AMOUNT OF DILIGENCE AND RESEARCH AND AN ASTUTE EYE. ELLERY HAS ALL THREE.

THANKS FOR FOLLOWING THE LRFA BLOG!

Dedicated to photography: an introduction to the Yancey Richardson Gallery with its director Matthew Whitworth

 

Matthew Whitworth
Associate Director
Yancey Richardson Gallery

AS AN ARTISTIC MEDIUM, PHOTOGRAPHY IS A FAIRLY RECENT NEWBIE TO THE ART MARKET. ALTHOUGH THE CAMERA WAS INVENTED IN THE MID-19th CENTURY AND WAS PREDATED BY THE CAMERA OBSCURA, PHOTOGRAPHY AS AN ART FORM WAS TRULY RECOGNIZED IN THE 20th CENTURY, EXHIBITED IN GALLERIES AND COLLECTED BY INDIVIDUALS AND MUSEUMS. CIRCA 1485, LEONARDO DA VINCI USED THE CAMERA OBSCURA TO STUDY PERSPECTIVE AS FIRST DOCUMENTED IN HIS CODEX ATLANTICUS.  THE DUTCH MASTERS, PARTICULARLY VERMEER, WHOSE ICONIC PAINTINGS ARE CELEBRATED FOR THEIR QUIET BEAUTY AND IMPECCABLE DETAIL, MADE USE OF THE PINHOLE CAMERA AS EARLY AS THE MID-17th CENTURY. NOW GALLERIES DEDICATED TO THE ART OF PHOTOGRAPHY, SELLING BOTH VINTAGE AND CONTEMPORARY PRINTS, HEAVILY POPULATE THE GALLERY WORLD ALONG WITH GALLERIES THAT EQUALLY FEATURE PHOTOGRAPHY IN AN EXHIBITION PLATFORM THAT INCLUDES PAINTING, SCULPTURE AND VIDEO.

Stephen Shore
County of Sutherland, Scotland
1988
C-print mounted on aluminum

ONE OF THE LONG ESTABLISHED AND MOST DEDICATED IS THE  YANCEY RICHARDSON GALLERY THAT OPENED IN SOHO IN 1995, THEN LAUNCHING WHAT IS TODAY ONE OF THE MOST PREEMINENT GALLERIES TO SPECIALIZE IN FINE ART PHOTOGRAPHY IN THE UNITED STATES.  THE GALLERY WORKS WITH BOTH EMERGING AND ESTABLISHED COLLECTORS, MUSEUMS AND PRIVATE INSTITUTIONS. GALLERY INVENTORY RANGES FROM ESTABLISHED MASTERS OF THE 20^thAND 21^stCENTURY SUCH AS CARTIER-BRESSON, ROBERT FRANK, AND ANSEL ADAMS TO CONTEMPORARY AND MID-CAREER ARTISTS.

ONE OF THE MOST INTERESTING PHOTOGRAPHY EXHIBITIONS ON NOW IS BEING: NEW PHOTOGRAPHY 2018 AT THE MUSEUM OF MODERN ART, NEW YORK. IN A BEAUTIFULLY CURATED EXHIBITION OF 17 INTERNATIONAL PHOTOGRAPHERS, PAUL MPAGI SEPUYA EXEMPLIFIES THE PICTORIAL, POLITICAL AND SOCIAL CONCERNS OF ARTISTS’ TODAY, EXPLORING HIS IDENTITY IN INTENSE FIGURATIVE IMAGES VIEWED THROUGH THE LENS OF CONSTRUCTIVIST COLLAGE.

Paul Mpagi Sepuya
Figure with Poppies After RBN (2604), 2015
Archival pigment print

http://www.yanceyrichardson.com/

IN TODAY’S LRFA BLOG, WE ARE PLEASED TO WELCOME MATTHEW WHITWORTH, A DIRECTOR AT THE GALLERY SINCE 2015.

MATT, THANK YOU SO MUCH FOR CONTRIBUTING TO THE LRFA BLOG WITH OUR FIRST INTERVIEW ON A GALLERY DEDICATED EXCLUSIVELY TO THE ART OF PHOTOGRAPHY.

HOW DID YOU FIRST BECOME INTERESTED IN ART? DID YOUR FAMILY COLLECT OR WHERE YOU INTERESTED IN THE PRACTICE ITSELF?

When I was a young boy growing up in New York City, my favorite places to visit (besides the Museum of Natural History) were the Metropolitan Museum of Art and the Guggenheim, the latter most likely because I had dreams of skateboarding down it. I liked looking at the paintings and sculptures and roaming around the great spaces. I also went to school with Frank Stella’s son Michael. He would invite me over and we’d hang out. His dad had some of his own large-scale paintings installed in their house as well as several in progress downstairs in the studio. I thought they were pretty cool, but not as much as the scale model train sets he had been working on.

Frank Stella
Whitney Museum of American Art
2015 Retrospective

My introduction to photography came from my mother. She became interested in amateur photography through her sister and set up a small darkroom when I was about 7. I was hooked instantly. Seeing images develop in the shadows of the red darkroom safelight was like alchemy to me.

WHAT IS YOUR EDUCATIONAL HISTORY AND WHEN DID YOU BEGIN TO FOCUS ON ART HISTORY IN GENERAL AND PHOTOGRAPHY IN PARTICULAR?

 My interest in photography continued throughout high school when my family and I moved to a small suburb of Boston. I was able to use the school’s equipment as well as set up a darkroom in our basement. I went to UMass Amherst for 2 years and took some wonderful art history classes, but was frustrated there because I had to travel back and forth to Smith College (as part of the great Five College Interchange program) to gain access to a darkroom and photography classes. I remembered SUNY Purchase had an active art program from my earlier college searches, so I went to visit and before I knew it, had transferred and graduated. My all-time favorite class at Purchase was “Field Trips to Museums and Galleries of New York,” taught by Irving Sandler. It was equivalent to something like “Tasting Great French Food of New York with Julia Child.”

David Maisel
Atlas
Aerial Photography

WHAT A PRIVILEGE TO HAVE STUDIED WITH IRVING SANDLER, ONE OF AMERICA’S MOST INFLUENTIAL ART HISTORIANS WHO, IN 1970, WROTE THE LANDMARK “TRIUMPH OF AMERICA PAINTING” AND, AS RECENTLY AS 2015, “SWEPT UP BY ART”.

https://www.artinamericamagazine.com/news-features/magazines/archives-new-cool-art/?utm_source=Art+in+America&utm_campaign=aff2ae75aa-EMAIL_CAMPAIGN_2018_06_05_03_40&utm_medium=email&utm_term=0_c7cb106f7b-aff2ae75aa-293049497

WHAT IS YOUR PREVIOUS WORK HISTORY AND WHAT PROMPTED THE MOVE TO YOUR CURRENT POSITION?

I worked at Janet Borden, Inc. for many, many years. I learned a lot but it was time for a change. YRG’s program is so relevant, topical, and growing in such an interesting way. I’m proud to be a part of it.

David Maisel
Atlas
Aerial photography
May 17 – July 6, 2018

IN OUR NEXT POST, MATTHEW WILL SHARE SOME OF THE VERY RICH HISTORY OF THE GALLERY, FROM ITS ORIGINAL LOCATION IN SoHo, TO ITS CURRENT ONE ON WEST 22nd STREET IN THE HEART OF CHELSEA.

PLEASE JOIN US!

The future of the American art market with Questroyal’s Chloe Heins

Main Gallery
Questroyal Fine Art

IN THEIR NEW BOOK, ALTERED TRAITS, PSYCHOLOGISTS DANIEL GOLEMAN  AND RICHARD DAVIDSON UNVEIL NEW RESEARCH IN THE FIELD OF NEUROSCIENCE TO SHOW WHAT MEDITATION AND MINDFULNESS DOES TO ACTUALLY CHANGE YOUR MIND, BRAIN AND BODY. MEDITATION INCLUDES A WIDE RANGE OF PRACTICES AND DIFFERING TYPES THAT PRODUCE UNIQUE RESULTS BUT A MIND UNDISTURBED IS A SIGNIFICANT GOAL IN ALL THE GREAT SPIRITUAL TRADITIONS. IN 1843, JOHN RUSKIN, THE ENGLISH ART CRITIC, PUBLISHED HIS FIRST VOLUME OF HIS MODERN PAINTERS , INSTRUCTING ARTISTS TO BE TRUTHFUL TO NATURE’S FORMS AS TRUTH IN APPEARANCE WOULD LEAD TO HIGHER MORAL AND SPIRITUAL TRUTHS. OUR HUDSON RIVER SCHOOL EMBRACED THIS AND DEDICATED THEIR WORK TO THE ACCURATE DEPICTION OF NATURE. STUDYING AND APPRECIATING WORKS THAT DEPICT THE SPLENDOR OF NATURE AND THE POWER OF GOD’S HAND AT WORK CAN INSPIRE THE SAME UNDISTURBED MIND.  THIS SCHOOL OF PAINTING MAKES UP THE HEART OF QUESTROYAL FINE ART’S INVENTORY.

George Lambdin
Floral Still Life
Oil on canvas

TODAY, CHLOE HEINS, THE GALLERY DIRECTOR, WILL SPEAK ABOUT ADVISING NEW COLLECTORS, THE FUTURE OF THE AMERICAN MARKET AND PLANS FOR THE FORTHCOMING SEASON.

https://www.questroyalfineart.com/

AS A YOUNG  COLLECTOR BEGINNING TO ACQUIRE WORKS OF ART, WHAT ARE THE GUIDELINES TO CONSIDER AND YOUR RECOMMENDATIONS TO STEER THEM IN THE RIGHT DIRECTION?

We advise collectors to buy the best painting they can afford. Rather than going for a subpar example by the biggest name or the highest volume of works within their budget, we advise them to begin with what they love. Then they can confirm that they are receiving a fair price and that it is a solid representation of the artist. There are many artists that are undervalued and never receive  the recognition they deserved and this can be a great opportunity for new collectors. Above all, buy what you love. This will never betray you.

Edward Moran
Lobster Fishing, Long Island
Oil on canvas

IN A TIME WHEN A FEW CONTEMPORARY ARTISTS SUCH AS BASQUIAT AND JEFF KOONS AND CONTEMPORARY MASTERS SUCH AS SIGMAR POLKE AND GERHARD RICHTER ARE COMMANDING RECORD AUCTION PRICES, HOW DO YOU INTEREST AND DIRECT A NASCENT COLLECTOR TO THE AMERICAN MARKET?

It is easy to get discouraged by the prices in the post-war and contemporary market and the rampant celebrity of the key artists, collectors, and dealers. This is why I like to discuss American art within the context of the better-known areas of the art market. Once collectors see the inexplicable discrepancy in value and realize they could buy the entire Questoyal inventory for the price of one Lucien Freud painting, they begin to take notice! We have broken down boundaries by advertising in non-art-specific publications which attract a different type of client. Bringing new collectors into the American art market is essential.

Charles Burchfield
Woodland Scene

WHAT DO YOU SEE AS THE FUTURE OF THE AMERICAN MARKET?

While it can be unpredictable, the American paintings market does not trend towards a bubble. It’s relatively steady compared to other genres of art. The new interest in American art that we are seeing indicates a bright future. Just this year, several of our colleagues have also met new clients who have become very active at a high level. However, American art dealers have to be comfortable and confident in the shadow of the post-war and contemporary market and many dealers have given up.

I am cautiously optimistic that the American art market will continue to grow, and hopefully our colleagues in the gallery and auction sectors will remain dedicated. We certainly are!

Questroyal Fine Art
Be Uncool
Published November 2017

WHAT EXHIBITIONS AND PUBLICATIONS CAN WE LOOK FORWARD TO IN THE 2017-2018 SEASON?

Our annual hardcover Important American Paintings catalogue became available in early October. Volume XVIII: Be Uncool is an exciting addition to the series and features 37 collection highlights. The concept stems from our ongoing advertising campaign urging collectors to “be uncool” and seek what is timeless, not trendy.

“Be uncool” has become an effective headline for us, capturing the attention of many readers of the New York Times Magazine, the New Yorker, and Architectural Digest. But it is more than just a promotion; it is a philosophy and a call to action…Will you accept my challenge to be uncool? Will you follow the preference of your heart and question the opinion of others ? Are you willing to sacrifice the fleeting rewards of all that is timely for the transcendent satisfaction of pursuing what is truly timeless ? 

Excerpt from the foreword by Louis Salerno, Volume XVIII, “It is Wise to be Uncool”.

CHLOE, THANK YOU SO MUCH. YOUR LOVE OF AMERICAN ART AND ITS IMPORTANCE RESOUNDS IN EVERY WORD.

PLEASE JOIN US FOR THE NEXT POST TO WELCOME KATE ABRAMS, AN ASSOCIATE DIRECTOR AT HAUSER & WIRTH, ONE OF OUR MOST RESPECTED AND IMPORTANT INTERNATIONAL MODERN AND CONTEMPORARY GALLERIES. WITH LOCATIONS IN NEW YORK (2), LONDON, LOS ANGELES, ZURICH, STAAD AND SOMERSET, ENGLAND, WE HAVE PLENTY OF TERRITORY TO COVER. WE COULDN’T HOPE FOR A BETTER GUIDE THAN KATE.

 

Van de Weghe Fine Art, a stellar exhibition history from Magritte to Carl Andre

Van de Weghe Fine Art
1018 Madison Avenue
New York City

CENTRAL PARK IS A SINGULAR DESTINATION IN NEW YORK. WHILE UPTOWN NO LONGER HAS A MONOPOLY ON UPSCALE LIVING, IT DISTINGUISHES ITSELF AS A HEARTLAND FOR EXCELLENT SCHOOLS, CLASSIC RESIDENCES, GREAT DINING AND THE LEGENDARY MUSEUM MILE THAT INCLUDES THE METROPOLITAN, MET BREUER AND THE GUGGENHEIM. IN THE LATE 19th CENTURY, NEW YORK’S ROBBER BARONS BEGAN BUILDING ALONG THAT STRETCH OF FIFTH AVENUE, PRIVATE RESIDENCES THEN, MUSEUMS NOW SUCH AS HENRY CLAY FRICK’S MANSION ON 70th AND FIFTH AVENUE AND THE NEUE GALLERY NEW YORK ON 86th STREET OFF FIFTH. BUILT BY INDUSTRIALIST WILLIAM STARR MILLER’S AND LATER OCCUPIED BY MRS. CORNELIUS VANDERBILT III, THE NEUE GALERIE WAS RESTORED TO ITS ORIGINAL CONDITION BY THE BRILLIANT ARCHITECT ANNABELLE SELLDORF WITH SUBTLE ADDITIONS OF ALL THE MODERN STANDARDS REQUIRED BY TODAY’S MUSEUMS.

Van de Weghe Fine Art

IN 2008, VAN DE WEGHE FINE ART RETURNED TO THE UPPER EAST SIDE TO OPEN A SECOND GALLERY AT 1018 MADISON AVENUE BETWEEN 78TH AND 79TH STREET, ULTIMATELY CONSOLIDATING TO THIS SINGLE NEW YORK VENUE. SINCE ITS INCEPTION IN 1999, THE GALLERY HAS PRESENTED SECONDARY MARKET MODERN, POST-WAR AND CONTEMPORARY EUROPEAN AND AMERICAN MASTERS. THE GALLERY HAS A LOYAL AND HARD-WORKING TEAM THAT  ALLOWS CHRISTOPHE TO TRAVEL WORLDWIDE TO VISIT COLLECTORS AND TO PARTICIPATE IN THE ART FAIRS THAT TAKE PLACE AROUND THE WORLD.

http://www.vdwny.com/

VAN DE WEGHE FINE ART,  1018 MADISON, IS HOUSED IN A LANDMARK ART BUILDING LOCATED BETWEEN 78th and 79th STREET NOTED FOR ITS BLACK AND WHITE TERRAZZO SIDEWALK CREATED BY ALEXANDER CALDER IN 1970.

The sidewalk was completed in 1970 and professionally restored in 2002 at a cost of $100,000 by the building owners from 1014-1018 Madison with the support of the Calder Foundation and NYC Landmarks Commission. Calder stayed at the 1016 townhouse with Klaus and his wife (who were dealers of modern works) frequently during the height of his career, and the mark he left is not only on the sidewalk in front.

Alexander Calder
Terrazzo Sildewalk
1018 Madison Avenue

CHRISTOPHE, WHAT PROMPTED YOUR RETURN TO THE  UPPER EAST SIDE?

I was the first gallery in Chelsea to show secondary market works in an exposed public space, giving the public, dealers and collectors access to my material. Most collectors of secondary market works tend to congregate uptown and stay in hotels or have homes on the Upper East Side. I had always loved the 1018 building and when Per Skarstedt’s space became available, I was excited to be in a space of his again.

RENÉ MAGRITTE
Van de Weghe Fine Art
November 2 – 22, 2006
Installation view

WHAT ARE SOME OF THE EXHIBITIONS AT 1018 MADISON THAT STAND OUT AND WHY? YOUR EXHIBITION HISTORY COVERS SUCH A WIDE SPECTRUM OF ARTISTS AND SIGNIFICANT MODERN MOVEMENTS. WHAT IS THE THINKING BEHIND YOUR CURATORIAL PROGRAM?

My thinking has always been very consistent. If I like a work as a collector and would want it in my home, then I will buy it.

Our 2016 exhibition of works by Rene Magritte has a special resonance for me. I feel close to him as he is a Belgian artist and my favorite surrealist and there is my family connection with the Magritte Room at the Grand Casino in Knokke.

Rene Magritte
Memory
1948

Our exhibit concentrated on the paintings, gouaches and drawings Magritte made in the 1940s and 50s. Magritte had developed a rich vocabulary of images of everyday objects and, unlike many surrealists,  utilized the techniques and materials we associate with academic representation.  While other surrealist painters tend towards a biomorphic abstract style, I am drawn to the simplicity and directness of Magritte’s images that also offer a wealth of meanings, symbols and poetic metaphor. 

DUANE HANSON
Queenie II, 1988
Bronze, polychromed in oil, mixed media with accessories
Lifesize

THE GALLERY HAS PRESENTED SEVERAL EXHIBITIONS OF THE WORK OF DUANE HANSON.

Yes, the gallery has worked with the estate of Duane Hanson for many years. I view him as one of the most important and influential American sculptors of our time. Hanson’s hyper-realists figurative works of the 1960s represent a radical return to figuration following a long period of abstraction in American art. His work was somewhat radical for its time. He studied at Cranbrook at a time when abstract art reigned, yet he embraced the figure and was a spokesman for the socio-political conscience of his time.

The works are cast from life, family, friends and neighbors often dressed in second-hand clothing. Life-size and lifelike, made of cast fiberglass and polyester resin, the figures are so faithful to reality that they often fool the public into believing they are real. In our 2013 Hanson exhibit, we concentrated on sculptures of ordinary people in everyday situations. Traveller, a bronze completed in 1987, presents a tourist who has taken a respite from his journey taking an improvised nap atop his baggage. In Bus Stop Lady, a polyvinyl work from 1983, a middle-aged woman waits for a ride with her shopping bags.  Both these subjects reflect a momentary pause en route to an unknown destination.

DUANE HANSON’S CHINESE STUDENT, 1989
REMEMBERING TIANANMEN SQUARE
JULY 6 – 31, 2014

In 2014, we installed Hanson’s Chinese Student, 1989: Remembering Tiananmen Square, to commemorate the 25th anniversary of the protests. In the late 1960s Hanson began to address social and political subjects in his brutally realist manner. In Chinese Student, Hanson marries the political with the personal. An ordinary student turned political activist sits on the ground holding a protest sign, human in his vulnerability yet symbolic of the political violence.

Andre/Judd
Van de Weghe Fine Art
May – June 2014

THE RANGE OF EXHIBITIONS IS SO BROAD WITH THE SINGULAR CRITERIA OF QUALITY AND ART HISTORICAL SIGNIFICANCE AS THE COHESIVE THREAD. YOU OFTEN EXHIBIT WORKS BY THE MINIMALIST WORKS, A PERIOD I PARTICULARLY APPRECIATE. WHAT ARE SOME OF THE EXHIBITIONS THAT DOCUMENT THIS MOVEMENT?

IN 2014, we juxtaposed the works of Carl Andre with those of Donald Judd. Both artists are key figures in Minimalism, using industrial and simple materials and repetitive forms to explore our sense of time and space. Both Andre and Judd are emphatically non-representational artists, creating seemingly simple works that demand close attention. 

Andre is best known for his floor installations, consisting of tile-like metal forms, and I was very pleased to be able to offer two strikingly different examples of these. 81 Ace Zinc Square, 2007 is a sprawling plane of 81 zinc plates arranged in a square with a mottled metallic surface. It occupied most of the floor in the main gallery while 6 Glarus Copper Integer, 2002 is a small arrangement in brilliant copper. 

Donald Judd

Judd, an art writer and theoretician as well as an artist, created simple, elegant forms from industrial materials: metals, plywood, concrete and Plexi. We were able to present a group of works that represent the series for which he is best known. Untitled, 1995, a “Swiss Box” aluminum enameled in reds and blues showcases Judd’s sense as a colorist while Untitled, 1969-1970, a bull-nosed “Progression” in shining brass, is emblematic of Judd’s elegant simplicity of form and material.

THE ART FAIR HAS DEVELOPED AN INTEGRAL PRESENCE IN THE ART MARKET, OFFERING A LEVEL OF CONCENTRATED SALES AND EXPOSURE TO COLLECTORS WORLDWIDE. MANY COLLECTORS PREFER ATTENDING FAIRS AS THEY PROVIDE A WIDE SPECTRUM OF ART IN A CONCENTRATED VENUE.

Van de Weghe Fine Art
TEFAF NYC SPRING 2017

VAN DE WEGHE FINE ART IS  A STELLAR PARTICIPANT IN THE BEST INTERNATIONAL FAIRS, CAREFULLY CURATING EACH BOOTH WITH WORKS BY ESTABLISHED MODERN AND CONTEMPORARY MASTERS. IN OUR NEXT LRFA BLOG POST, CHRISTOPHE WILL SHARE HIS THINKING ON THIS SIGNIFICANT ASPECT OF THE ART BUSINESS.

YOUR COMMENTS AND READERSHIP ARE VERY MUCH APPRECIATED!

 

 

The hierarchy of the auction world with Robert Manley, Deputy Chair of Phillips

THE FIRST RECORDED AUCTION ACTIVITY TOOK PLACE IN GREECE IN 500 BC WHERE WOMEN WERE AUCTIONED OFF AS BRIDES BY THEIR FAMILIES. ACCORDING TO THE RESEARCH POSTED IN THE TELEGRAPH, IN A BLOG BY CHARLOTTE ZAJICEK, IN OCTOBER 2016, THE ROMANS, AS WELL, WERE ACTIVELY INVOLVED IN THE AUCTION PROCESS, REGULARLY SELLING OFF THE SPOILS OF WAR, SLAVES AND DEBTORS’ HOLDINGS BY THIS MEANS.

Roman Slavery Auctions

AFTER A LULL OF SEVERAL CENTURIES, THE AUCTION HOUSE, IN A FORM SIMILAR TODAY, BEGAN TO MULTIPLY, THE FIRST, THE STOCKHOLM AUCTION HOUSE APPEARING IN 1674, FOLLOWED BY SOTHEBY’S, FOUNDED IN 1744 AND THEN CHRISTIE’S, IN 1766.  IN RECENT DECADES, MODERN TECHNOLOGY HAS TRANSFORMED THE PROCESS OF AUCTIONING, INITIALLY WITH THE INTRODUCTION OF TELEPHONE BIDDING AND AND CURRENTLY REVOLUTIONIZING THE AUCTION PROCESS WITH ONLINE AUCTIONS DURING A PERIOD WHEN THE CONTEMPORARY ART MARKET HAS EXPLODED TO A FULLY GLOBAL SCOPE.

Online auction

TODAY, THE LRFA BLOG WELCOMES BACK ROBERT MANLEY, DEPUTY CHAIR AND WORLDWIDE CO-HEAD OF POST WAR AND CONTEMPORARY ART AT PHILLIPS, FOR A DETAILED ANALYSIS OF THE AUCTION HOUSE DEPARTMENT HIERARCHY, FORM AND FUNCTION. THANK YOU, ROBERT, FOR TAKING THE TIME TO JOIN US!

HOW DOES CHRISTIE’S STRUCTURE ITS DEPARTMENTS? WHAT ARE THE RESPONSIBILITIES OF A JUNIOR SPECIALIST, SENIOR SPECIALIST AND DEPARTMENT HEAD?

At the top, you have the International Head (or Co-Heads) who provides the vision and overall direction of the department worldwide. Then there are the local Heads of Department in New York and London, who report into the International Head. Then there are Sale Heads: Evening sale, Day Sale, Off-season (such as First Open), and Online sales. These Sale Heads are in charge of virtually every decision related to their sale, and they report into the local Department Heads. Junior specialists/cataloguers generally report to Sale Heads. 

Then there are various senior colleagues who report to International Heads, who work on various important deals and assist important clients. We also had a separate Private sale department within the department, with its own team of specialists and administrators. This was the general structure about 1 year ago. In many ways, all specialists do the same things—we work on appraisals, price and evaluate artwork, help bring in business, help manage consignments, and work with collectors and dealers when it comes to buying and selling art.

Working side by side with the International Heads and Department Heads are Business Managers, who make sure everything runs smoothly and help manage everything on a day to day basis. They are the unsung heroes of the departments, in some ways, along with the various administrators who help manage the mountains of paperwork and logistics.

HOW MUCH INVOLVEMENT DID YOU AND YOUR TEAM HAVE IN THE WRITING OF THE CATALOGUE LOT NOTES, A RICH AND HUGELY ACADEMIC CONTRIBUTION NOT JUST TO THE SALE BUT TO THE UNDERSTANDING AND KNOWLEDGE OF THE LOTS COMING UP FOR SALE.

When I started in 2000, the specialists on the team wrote all of the notes. I wrote a fair amount of the Evening sale essays in my first 6 years at Christie’s and it was an important part of my learning experience. I remember on more than one occasion, being at Christie’s at 3AM as we were finishing the Evening sale catalogue, and having Brett Gorvy (the International Head of Christie’s) ask me to write or rewrite a quick catalogue note. The catalogue deadline period is a bit like being in graduate school, and working insanely long hours was (and still is) a regular occurrence.

I forget the exact date but it wasn’t until about 2008 or so that we finally hired a proper full-time writer…by the time I left, we had a small team of writers (and a pool of freelancers) writing most of the essays. Brett Gorvy was a writer before he joined Christie’s and he took the texts and catalogues very seriously, obsessing about the comparables we would use, and the catalogue layout. He wrote many of the texts himself and still writes on the things that are important to him. In this regard, he was very much an inspiration and I learned a great deal from him.

WHAT IS THE PROCESS IN TERMS OF CONSIGNING WORK FOR SALE? HOW DOES THE SELECTION PROCESS OF WHICH SALE WOULD BENEFIT THE CONSIGNEE THE MOST TAKE PLACE?

Another great question, impossible to answer quickly. It really depends on the object. For 90% of the works, the choice is clear—all sales have a general band of minimum and maximum values and most artists have a clear track record of having performed well in those venues. And as I said before, my personal philosophy is that the auction estimate is what matters, more than the venue.

But there are situations in which a work of art can arguably be put in more than one sale and that is a decision that is generally made by a Sale Head. When it involves an Evening sale, the Sale Head typically gets input from their senior colleagues. We treat one-off consignments differently than a collection. You might not put a $100,000 Warhol in an Evening sale, but if it comes in with a nice group of higher value Pop Art, you might.

There is also an intangible quality, a bit hard to define, but you are looking to put as many “special” works as possible in the Evening sale. Unlike a day sale, you can only have a finite number of works in an Evening sale and since it is the only Sale that the press will cover, it needs to be both interesting and commercially successful.

Personally, I think the distinction between an “Evening sale lot” and a “Day sale lot” is a false one. Every situation is different. I remember putting some great works by the Canadian Color Field painter, Jack Bush, into an off-season sale in July 2013 (from the collection of Andy Williams)…a move that some people in the trade were second-guessing. The three works in the sale remain three of the four highest prices ever paid for the artist, including the current world record, which sold for over $600,000 against an estimate of $30-50,000!

Jack Bush
Red Side Right (Right Side Red) 1965

YOU REACHED THE STATUS OF DEPUTY CHAIRMAN AT CHRISTIE’S PRIOR TO YOUR DEPARTURE? WHAT WERE THE RESPONSIBILITIES IN THAT ROLE AND IN THE EXECUTIVE COMMITTEE ON WHICH YOU SERVED FOR THE INTERNATIONAL POST-WAR AND CONTEMPORARY DEPARTMENT?

Essentially I did the same job I always did…working with top clients on top consignments. The only difference was that on the Executive Committee (and other committees I served on), I was involved with the strategic planning and overall vision of the department.

THE ART MARKET ENTERED A CORRECTION PHASE AT LEAST TWO YEARS AGO, AND WITH EACH PASSING SEASON OF AUCTION RESULTS, CONTINUES ITS REVISIONIST TREND. ROBERT MANLEY IS CERTAINLY ONE OF THE MOST EXPERIENCED AND SEASONED VETERANS OF THE AUCTION WORLD AND, IN OUR NEXT POST, THE LRFA BLOG IS VERY PLEASED TO HAVE HIM AS OUR GUIDE.

PLEASE JOIN US!

 

 

Private collections open to the public, a philanthropic contribution and tax strategy

The Menil Collection
20th Century Gallery

A CHARITABLE TRUST ALLOWS A GENEROUS DONATION TO A CHARITY OF YOUR CHOICE WHILE PROVIDING A TAX BREAK TO YOU AND TO YOUR HEIRS. THESE ARE IRREVOCABLE TRUSTS  THUS DEMANDING PARTICULARLY CAREFUL CONSIDERATION.  ONCE THE TRUST GOES INTO EFFECT, THE DECISION CAN NOT BE REVERSED AND YOU CAN NOT REGAIN LEGAL CONTROL OF THE PROPERTY IN THE TRUST.

WITH THAT IN MIND, IN LIGHT OF THE EVER EXPANDING PASSION FOR COLLECTING BOTH ART AND COLLECTIBLES, MANY CHARITABLY-MINDED HIGH NET WORTH INDIVIDUALS AND FAMILIES ARE TARGETING THIS TAX AND ESTATE PLANNING OPPORTUNITY.

Ken Griffin’s collection showcased at Chicago’s Art Institute

IN SEPTEMBER 2016, LEGAL EXPERTS DIANA WIERBICKI AND PAUL ROY, OF WITHERS BERGMAN, AS GUEST EDITORS IN JANET NOVAK’S COLUMN AT FORBES ON TAX AND RETIREMENT PLANNING AND POLICY, CONTRIBUTED A CLEAR AND COMPREHENSIVE ARTICLE ON A NEW IRS REVENUE PROCEDURE  THAT MAKES A CHARITABLE REMAINDER TRUST AN EXCELLENT VEHICLE FOR PHILANTHROPIC ART COLLECTORS.

The Broad Collection
Downtown Los Angeles

 

NEW IRS RULE OPENS TAX SAVING STRATEGY TO ART COLLECTORS

Art and collectibles are subject to a 28% long-term federal capital gains rate, compared to a top rate of 20% for stocks and other investments assets.  Add on the 3.8% Net Investment Income Tax and state and local income taxes, and a New York City collector can end up paying up to 44% on gains; a California collector could pay up to 45%.

So understandably, collectors are always looking for ways to mitigate this tax burden. A new IRS Revenue Procedure makes using certain charitable remainder trusts (CRTs) as vehicles for tax deferral more viable for art and collectibles.  Moreover, this change comes at an opportune time, what with the Federal Reserve expected to increase interest rates later this year. (Charitable remainder trusts are most effective in higher interest environments.)

Click to access rp-16-42.pdf

The Ellsworth Kelly Room
The Fisher Collection at SFMoMA

The dual benefit of CRTs

The name “charitable remainder trust” suggests a charitable component, and not surprisingly, CRTs are typically used by those who are both charitably inclined and want to sell a highly appreciated asset without paying a big capital gains tax bill. If appreciated art is sold outright by an art collector, the collector would owe income tax on the gain in the year of the sale.  By contrast, if a CRT sells the appreciated art, the gain is taxed over time as distributions are made from the CRT. Meanwhile, the CRT, which is itself generally exempt from state and federal income taxes, can reinvest the full amount of sale proceeds unreduced by taxes.  Additionally, in the year the CRT sells art, the collector can take a charitable deduction on his individual income tax return — a deduction based on the remainder value of the CRT that is projected (based on formulas dictated by the IRS) to be left for charity.

de la Cruz Collection
Miami, Florida

 How a collectibles CRT works

Typically, a collector transfers art to the CRT and the CRT’s trustee sells that art, reinvesting the proceeds in a portfolio of stocks and bonds.  As noted above, the initial transfer of art to the CRT and the subsequent sale of the art will not result in a current capital gains tax bill for either the art collector or the CRT.

Scott Burton
Rock Settee
Pulitzer Arts Foundation
St. Louis, MO

The CRT then makes a series of annual payments to a non-charitable beneficiary, usually the art collector who created the trust (or a family member) for his or her life or for a term of years.  The annual payments to the art collector or family member will be made from the CRT’s portfolio of assets, and the amount will vary depending on the structure of the CRT.

GUEST POST, September 21, 2016, FORBES/Personal Finance#TakeATaxBreak with Janet Novack

Diana Wierbicki is the global head of art law at Withers Bergman. Paul Roy is of counsel at the firm. 

Rockefeller Center

SLEIGH BELLS ARE RINGING, OR AT LEAST THOSE OF THE  SALVATION ARMY CAROLERS ON FIFTH AVENUE AND THE HOLIDAYS ARE RAPIDLY APPROACHING! ONE ANNUAL TRADITION AT THE LRFA BLOG IS BOOK EXPERT DOUG FLAMM’S CONTRIBUTION HIGHLIGHTING  SPECIAL ART PUBLICATIONS TO GIVE (AND TO REQUEST) ON YOUR SANTA’S WISH LIST.

DOUG HAS JOINED GAGOSIAN GALLERY TO DEVELOP AND EXPAND ITS BOOK STORE AND ENRICH ITS INVENTORY OF ARTISTS’ BOOKS AND RARE BOOKS. LOCATED AT 976 MADISON, MAKE IT YOUR FIRST STOP FOR THE HOLIDAY SHOPPING SEASON!

 

 

Another of life’s certainties: Art and Taxes, with legal art expert Diana Wierbicki

Sotheby’s New York
November 2016 Evening Sale

DESPITE THE TREPIDATION THAT FACED THE NEW YORK AUCTION HOUSES IN ANTICIPATION OF LAST WEEK’S NEW YORK NOVEMBER AUCTIONS, THE RESULTS WERE REASSURINGLY STABLE. QUALITY WON AND ALTHOUGH A MORE JUDICIOUS AND CAUTIOUS ATTITUDE PERVADED THE SALES ROOMS, AT THE SAME TIME, RECORD PRICES WERE ESTABLISHED IN IMPRESSIONIST, MODERN AND CONTEMPORARY SECTORS.

Claude Monet (1840-1926)
Meule
signed and dated ‘Claude Monet 91’ (lower left)
oil on canvas
28 5/8 x 36 ¼ in. (72.7 x 92.1 cm.)
Painted in 1891

A NEW WORLD AUCTION RECORD FOR CLAUDE MONET’S GREAT WORK FROM THE GRAINSTACK SERIES WAS ESTABLISHED AT $81 MiLLION AND KANDINSKY’S 1935 OIL REALIZED SLIGHTED OVER $23 MILLION. AT SOTHEBY’S CONTEMPORARY EVENING SALE, GERHARD RICHTER’S A B, STILL TRIUMPHED AT $34 MILLION AND A NEW RECORD PRICE OF $11.7 MILLION WAS ESTABLISHED FOR ARTIST DAVID HOCKNEY’S MONUMENTAL WOLDGATE WOODS, 24, 25, and 26, OCTOBER 2006. 

AS THE ART MARKET CONTINUES TO HOLD SWAY AND RECORD PRICES ARE REALIZED AT AUCTION, THE PRACTICE AND FOCUSED SERVICES OF LAWYERS EXPERIENCED IN ART LAW, THE ART AND AUCTION MARKET AND MUSEUMS AND ART FOUNDATIONS HAVE GROWN IN GEOMETRIC PROGRESSION.

AS ALL PARTICIPANTS IN THE ART MARKET FACE ART SPECIFIC ISSUES OF OWNERSHIP, THIS TIMELY ARTICLE BY FORBES’ GUEST EXPERTS DIANA WIERBICKI AND SETH COHEN OF WITHERS BERGMAN FOCUSES ON THE TAX CONSIDERATIONS AND CONSEQUENCES OF THE ACQUISITION AND DEACCESSION AND ESTATE PLANNING OF ART IN THE UNITED STATES.

Wassily Kandinsky (1866-1944), Rigide et Courbé, 1935.
Oil and sand on canvas. 44⅞ x 63⅞ in
Estimate: $18,000,000-25,000,000.

PART II

Timeframe for Resale

A factor generally reviewed by NYS when determining whether a purchaser is a reseller (vs. a collector or investor) is the amount of time it takes for the purchaser to resell the art. This is a challenging factor for sellers of art because art that is fresh to the market generally garners higher prices. For art to appreciate enough to result in a profitable resale, it cannot be sold immediately after purchase. Therefore, the turnover of items for resale in the art market is not analogous to the timing of resale in other markets. This is at odds with the traditional notion that the longer an item is owned, the more it looks like investment property instead of inventory for resale, and suggests that NYS should be analyzing the resale timing in the context of the art market structure. That being said, there is no guarantee that NYS will take art market nuances into account when applying their general rules. In case of an audit or investigation, it is advisable to highlight art industry differences as a way to counterbalance the importance of this factor. Since the determination as to being a reseller looks at all relevant facts and circumstances, it is prudent that a putative reseller with long periods between sales ensure that the other factors be legitimately in the reseller’s favor.

Gerhard Richter
B. 1932
A B, STILL, 1986
oil on canvas
88 1/2 by 78 3/4 in. 224.8 by 200 cm.

A few of those factors are: (i) whether the purchaser maintains a gallery or specific place of business; (ii) whether the purchaser is an expert in the applicable area of art; (iii) whether the purchaser has employees; and (iv) how the purchaser reports and treats the income derived from sales (i.e., a purchaser cannot have it both ways – by claiming reseller status, while treating the income from sales as investment income subject to capital gains rates). In other words, a reseller operates a business and the more that business acts like a business, the greater the chance that it will survive unscathed by any NYS scrutiny. If investigated by NYS, having complete documentation as to these factors is key as many an investigator or auditor has been swayed by both the information contained in the documentation and the propositions for which they stand.

David Hockney
WOLDGATE WOODS, 24, 25, AND 26 OCTOBER 2006
oil on canvas, in six parts
overall: 72 by 144 in. 182.9 by 365.7 cm.

Selling Art off the Walls of a Home

There may be a valid business reason for displaying art in a personal residence, but by doing so, you invite a struggle with NYS. For example, a reseller’s home may be a great place to display art during orchestrated gatherings with potential buyers to show clients what the art looks like in a home environment. Nonetheless, despite valid reasons for home displays, NYS will highly scrutinize them and, to be frank, NYS is not without justification. NYS has the understandable view that a home display carries with it the purpose of personal use, namely the enjoyment of the art. This is not to say that home display is an automatic disqualifier, but a reseller argument where there is home display will likely be an uphill battle with investigators given their assumption that the reseller exemption is inapplicable. We note that, in some cases, having an area within the home used solely for business purposes has proved successful in defending against taxes and penalties in an audit and subsequent litigation.

 

Guest post by Diana Wierbicki and Seth Cohen, FORBES , May 10, 2016, in Janet Novak: Taxing Matters 
Diana Wierbicki is global head of art law and Seth Cohen is a partner specializing in tax controversies at Withers Bergman.

AND NOW, A WEEKEND OF FAMILY, FRIENDS, FOOTBALL, AND FOR SOME INCORRIGIBLE FEW, FITNESS! HAPPY THANKSGIVING FROM THE LRFA BLOG!

Wayne Thiebaud
Turkey Dinner
For the cover of the New Yorker
November 21, 2011

Art, a taxable commodity, with legal expert Diana Wierbicki

 

AS YOU BUY OR SELL A WORK OF ART, STAYING OUT OF TAX TROUBLE IS AS IMPORTANT A CONSIDERATION AS THE PROVENANCE, CONDITION AND PERIOD OF THE WORK.  SINCE ART HAS BECOME A GLOBAL, MULTI-BILLION DOLLAR INDUSTRY, AND HAS BECOME A SIGNIFICANT CONTRIBUTOR TO A STATE’S TAX COFFERS, PARTICULARLY NEW YORK STATE, ART DEALERS AND COLLECTORS HAVE BECOME THE FOCUS OF SCRUTINY BY STATE  TAX AUTHORITIES. IN THIS VIGOROUS INTERNATIONAL MARKET, ALLEGATIONS HAVE SURFACED THAT ART TRANSACTIONS ARE SOMETIMES A MEANS TO LAUNDER MONEY AND AVOID TAXES.

AS NOVEMBER IS AUCTION MONTH IN NEW YORK AND WE ARE RAPIDLY APPROACHING MIAMI ART BASEL, A SPECTACULAR NUMBER OF WORKS SPANNING IMPRESSIONIST, MODERN, POST-WAR, CONTEMPORARY, LATIN AMERICAN AND AMERICAN WORKS OF ART WILL EXCHANGE HANDS. THE LRFA BLOG PRESENTS THIS TIMELY CONTRIBUTION TO FORBES MAGAZINE, POSTED IN MAY 2016, BY ESTEEMED LEGAL EXPERTS, DIANA WIERBICKI AND SETH COHEN OF WITHERS BERGMAN. DIANA WIERBICKI IS GLOBAL HEAD OF ART LAW AND SETH COHEN IS A PARTNER SPECAILIZING IN TAX CONTROVERSIES AT WITHERS BERGMAN.

Guest post by Diana Wierbicki and Seth Cohen, FORBES , May 10, 2016, in Janet Novak: Taxing Matters 

Given that the art market is a multi-billion dollar industry and that so many of the world’s art sales and purchases take place in New York State (at record breaking prices), it is no wonder that cash-strapped state authorities are broadly searching for instances of tax evasion in the art world. We are seeing a tremendous increase in audits and investigations in this area and two recent settlements show the investigations are resulting in the payment of millions of dollars to the state. With results this profitable, it is likely that NYS investigations of art transactions will continue.

NYS is currently focusing on the use of resale certificates (which exempt a purchase from sales tax) in connection with art purchases. Under New York’s tax law, items purchased for resale must not be used for any other purpose, meaning personal enjoyment is a prohibited use. A person need not have the intent to evade a tax to be in violation of this law and may innocently fail to comply with the law simply by not knowing its complicated rules. Bottom line? This type of mistake can be costly and, in an industry where reputation is key, serious damage can be inflicted on an otherwise pristine reputation.

New York Attorney General Eric Schneiderman is on the hunt for tax abuses in the art world. (Photo by Eduardo Munoz Alvarez/Getty Images)

On May 3rd of this year, NYS Attorney General Eric Schneiderman released the following statement: “We are committed to rooting out tax abuses wherever we find them, especially in the art world, where the difference can be hundreds of thousands — if not millions — of dollars in lost tax revenue per sale. When art collectors don’t pay their fair share, law abiding New Yorkers should not be stuck footing the bill.” Strong words that are being backed-up with strong action.

Damien Hirst
‘The Virgin Mother’
Lever House on Park Avenue.
Photo Credit: Anthony Moore/Sipa Press

The two settlements recently in the press involve the well-known real estate investor Aby Rosen and art sales executive Victoria Gelfand. It was reported that they each own companies essentially formed to buy and sell art using resale certificates; they purchased art that was used for something other than resale; and the conditions of their settlements with NYS include future sales and use tax compliance.In Rosen’s case, his companies were used to purchase and commission 200 works of art (all but one of which were acquired with a resale certificate) for a total of $80 million from 2002 through 2015. The art was used for the purpose of Rosen’s enjoyment at his personal residences and to enhance his real estate company’s brand by displaying the art in his offices. According to the Attorney General, Rosen should have paid sales tax on each artwork when purchased or, alternatively, if the art was originally intended to be resold, sales tax should have been paid at the point the use of the art “diverted” to an ineligible use. Rosen settled with NYS for $7 million.

Gelfand used her companies to purchase 30 works of art for a total of $1 million from 2005 through 2013. The settlement was paid only with respect to works that were displayed in her home. Of particular note is the following quote from the Attorney General’s statement: “Art buyers may not avoid sales or use tax simply by claiming that artwork they enjoy at home is intended for resale…that rule is clear, and my office is committed to ensuring the art industry follows it.” Gelfand settled with NYS for $200,000.

The following tips highlight a few important takeaways from these settlements.

Resale Means Exclusively for Resale

The sole purpose and intent of an art purchase must be to resell the art. For example, in P-H Fine Arts Ltd. v. New York State Tax Appeals Tribunal, the taxpayer, Bob Guccioni, purchased artwork to enhance his “image as a publisher,” as well as the image of his business. Consequently, although the taxpayer intended to resell the art, the court denied his resale certificate because reselling was not his sole reason for purchasing the artwork.

IN PART TWO OF THE LRFA BLOG, THE LEGAL DEFINITIONS THAT APPLY TO RESALE OF ARTWORKS IN NEW YORK STATE ARE DEFINED.

 

Diana Wierbicki
Senior Partner
Withers Bergman

Guest post by Diana Wierbicki and Seth Cohen, FORBES , May 10, 2016, in Janet Novak: Taxing Matters 
Diana Wierbicki is global head of art law and Seth Cohen is a partner specializing in tax controversies at Withers Bergman.

 

 

Meredith Harper, private dealer: the next logical step

Reuters Institute

TRANSPARENCY IN EVERY INDUSTRY AND IN GOVERNMENT IS AT THE FOREFRONT OF OUR POLITICAL AND SOCIAL PRECEDENTS. ACCORDING TO A REPORT FROM REUTERS INSTITUTE FOR THE STUDY OF JOURNALISM, “INCREASINGLY, GOVERNMENTS AROUND THE WORLD ARE EXPERIMENTING WITH INITIATIVES IN TRANSPARENCY OR ‘OPEN GOVERNMENT’ AND HOW IT AFFECTS THE ACCOUNTABILITY OF THE PRESS.”  OPENNESS, ACCOUNTABILITY AND INTEGRITY DEFINE TRANSPARENCY IN GOVERNMENT AND BUSINESS.  IN INDUSTRIES THAT ARE FAIRLY UNREGULATED, SUCH AS THE MORE CREATIVE WORLDS OF ART GALLERIES, DEALERS, ARCHITECT/DESIGNERS OR, FOR THAT MATTER, INFORMATION TECHNOLOGY,TRANSPARENCY IS SANCTIONED BUT NOT ENFORCED BY  CODES OF ETHICS THAT FILL IN THE GAPS IN LAWS AND REGULATIONS WHEN THEY  CAN NOT BE APPLIED.

IN ITS MISSION STATEMENT, THE ART DEALERS ASSOCIATION OF AMERICA, FOR EXAMPLE, NOTES:

 In order to qualify for membership, a dealer must have an established reputation for honesty, integrity and professionalism among their peers, and must make a substantial contribution to the cultural life of the community by offering works of high aesthetic quality, presenting worthwhile exhibitions and publishing scholarly catalogues.

http://www.artdealers.org/about/mission

THE SUCCESS OF THE CLARION LIST, ESTABLISHED ONLY TWO YEARS AGO, CONFIRMS THE ART COLLECTOR’S INTEREST IN AN EASILY ACCESSIBLE BUT VETTED  DATABASE FOR ART RELATED SERVICES INDUSTRIES https://www.clarionlist.com/

LONDON-BASED PAIAM (PROFESSIONAL ADVISORS TO THE INTERNATIONAL ART MARKET), AN INTERNATIONAL NET WORKING PLATFORM FOR PROFESSIONALS ADVISING THE ART MARKET WHOSE MEMBERS “KNOW ABOUT SOMETHING THAT IS USEFUL TO THOSE WHO KNOW ABOUT ART, e.g. INSURANCE, LOGISTICS, LAW, ACCOUNTANCY, TAX, HAS RECENTLY EXPANDED ITS PRESENCE INTERNATIONALLY OPENING ITS MEMBERSHIP TO OVERSEAS PROFESSIONALS. http://www.paiam.org/

 

WHEN MEREDITH HARPER LAUNCHED HARPER FINE ARTS IN 2008, SHE WAS WELL-VERSED IN THE STANDARDS SET BY THE ART INDUSTRY FROM HER DIVERSE PROFESSIONAL EXPERIENCE IN THE GALLERY AND AUCTION WORLDS. THE LRFA BLOG IS DELIGHTED TO SHARE MEREDITH’S HISTORY AND PERSPECTIVE ON THIS ASPECT OF THE ART WORLD.

MEREDITH, WELCOME BACK!

Meredith Harper

YOU DECIDED TO JOIN THE RANKS OF THE SELF-EMPLOYED ALMOST A DECADE AGO. WHAT PROMPTED THE DECISION?

After having worked in every part of the art world — museum, auction house, and gallery— it really felt naturally like the next logical step.  I was being asked by collectors for my opinion on works of art that they were interested in that we weren’t selling at the gallery, or if I could help them find certain things that we didn’t have.  Being on my own allowed me complete freedom to do this, including from conflicts of interest of working with a gallery inventory. 

Meredith Harper Fine Art
Chelsea, New York

WHAT IS THE BASIC ROLE OF A PRIVATE DEALER? IN WHAT WAYS DOES A PRIVATE DEALER OFFER A SCOPE OF SERVICES THAT IS UNIQUE AND DIFFERS FROM THE ROLE OF THE GALLERIST AND THE SPECIALIST AT AUCTION?

Being a private dealer really is a culmination of all of the skills and experience that I’ve attained through the years at university, galleries and at auction.  The collectors with whom I work range from very knowledgable and experienced, to just starting out.  The most important part is helping them buy and sell works of art, which involves discussions around the intersection of many variables such as the significance of a work of art within that artist’s oeuvre, condition and authenticity, and determining value within a particular market.  I also handle all of the logistical concerns that go along with that, like shipping, installation, etc. I work with them on everything from defining and expanding their interests, creating and maintaining collection databases, building libraries, framing, preparing insurance appraisals — it really depends on the particular client’s interests and needs.  I also realize that for many collectors, the “art world” seems a fascinating but also often an opaque and sometimes trepidatious place … I can understand that and I enjoy being able to walk them through and demystify a lot of it.  They have the benefit of almost three decades of my knowledge to draw from, and the fact that I’m constantly immersed in this world.

Meredith Harper Fine Art

HOW DO YOU FIND WORKS THAT COLLECTORS GIVE TO YOU TO SELL?

It’s all about trust, communication and knowledge. These are relationships that I’ve had, in many cases, for decades, or with people who were referred to me by my clients or by colleagues in the business.  At the end of the day, the collectors with whom I work and who entrust me to sell things for them know that I’m giving them honest and impartial advice, and that I’m working in their best interests.  They also know that I’m extraordinarily discrete and ethical.  I’m very thoughtful and careful about how I go about selling things, and that can make all the difference.

Glenn Ligon

WHAT ARE THE VARIOUS WAYS YOU SEEK OUT WORKS THAT A COLLECTOR WISHES TO ACQUIRE?

I love doing detective work and tracking down exactly the work that a collector is looking to add to their collection.  It’s not about reacting to what becomes available in the market so much as really choosing precisely what fits the client’s interests and the dialogue that may be happening in a collection.  And again, this is about relationships and knowing who to talk to and where to look to find great things … It’s not just about “shopping” at an art fair or auction.  Sometimes we can get lucky and this happens immediately, but often it takes months and sometimes even years.  I once had a wonderful project that I loved doing with a client, which involved putting together a very specific group of works by an artist.  It took three years of constant and very involved research to track these down (and then to convince their owners to sell them), in one case from a collector who purchased his work out of the artist’s studio 40 years earlier.  It was incredibly rewarding to see these works slowly come together over that time. I love the “detective” aspect of it, and I love being able to put my knowledge to use to help my clients form stronger collections. 

MEREDITH’S PROFESSIONAL RANGE EXTENDS INTO THE CURATORIAL WORLD AND IN THE NEXT LRFA BLOG, WE ARE PLEASED TO SHARE THIS ASPECT OF WORKING IN THE ART BUSINESS WITH YOU.

UNTIL THEN!

The care and conservation of a collection: consult The Clarion List for expert help

 

BUYING YOUR FIRST WORK OF ART IS A MEMORABLE EXPERIENCE! BE IT A LITHOGRAPH BY AN ARTIST WHOSE WORK YOU HAVE ALWAYS APPRECIATED IN ITS ORIGINAL FORM IN A MUSEUM COLLECTION, A CONTEMPORARY ASSEMBLAGE BY AN EMERGING ARTIST FROM A LOCAL ART FAIR OR A RECORD-BREAKING SECONDARY MARKET PAINTING FROM AN EVENING AUCTION, THE SELECTION PROCESS AND ULTIMATE CHOICE, SOMETIMES NERVE-WRACKING, IS ONLY THE FIRST OF MANY DECISIONS THAT THE COLLECTOR MUST MAKE AS CUSTODIAN OF A WORK OF ART.

 

 

AS SEASONED COLLECTOR KNOW, THE  NEWLY ACQUIRED WORK SHOULD BE INSURED AND DOCUMENTED IN AN INVENTORY MANAGEMENT SYSTEM, ITS CONDITION EXAMINED BY A CONSERVATOR SPECIALIZING IN THE MEDIUM AND PERIOD OF THE WORK, FRAMED APPROPRIATELY TO ENHANCE THE ARTWORK, AND THEN – THE MOST FUN OF ALL  – INSTALLED IN A LOCATION THAT PERFECTLY ENHANCES ITS PRESENCE. THESE ARE JUST SOME OF THE CONSIDERATIONS NECESSARY FOR THE ONGOING CARE OF A COLLECTION.

SPECIFIC WORKS HAVE SPECIFIC NEEDS. FOR EXAMPLE, DAMIEN HIRST’S STUDIO GENERATES A REPORT ON THE CARE AND CONSERVATION OF THE ENTOMOLOGY PAINTINGS. TO INSURE THE CONDITION OF THE BUTTERFLIES, HIRST BUILDS A SPECIAL POCKET INTO THE FRAME OF THE CANVAS FOR AN INHIBITOR (MOTH PROOFING) THAT NEEDS TO BE INSPECTED AND CHANGED OVER A PERIOD OF TIME. “THE PAINTING NEEDS TO BE GIVEN A VISUAL INSPECTION ON A REGULAR BASIS TO ENSURE THAT THE SURFACE OF THE WORK IS IN GOOD CONDITION WITH NO SIGN OF CHANGE.”

HOW DOES THE COLLECTOR PUT TOGETHER THE BEST POSSIBLE TEAM OF RESPONSIBLE EXPERTS TO SUPPORT THE WORKS OF ART? THANKS TO THE CLARION LIST,  A CURRENT ONLINE DIRECTORY CAN PROVIDE EXPERTS IN EVERY SERVICE CATEGORY, SORTED BY LOCATION! THANKS TO THE INNOVATIVE IDEA AND DEDICATED HARD WORK OF CO-FOUNDERS, JESSICA PAINDIRIS AND GAIA BANOVICH, THE SEARCH IS EASIER AND MORE JUDICIOUS THAN EVER BEFORE. SEE FOR YOURSELF!

https://www.clarionlist.com

 

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JESSICA, THANKS SO MUCH FOR YOUR CONTRIBUTION TO THE LRFA BLOG.

TO CONTINUE, WHAT ARE THE PRIMARY NEEDS OF COLLECTORS AND HOW DOES THE DIRECTORY ADDRESS THESE?

Collectors are looking for the right company to buy or sell art, service an existing collection, or help grow a collection. We enable them to find do a very narrow search as needed – they can sort by company size (perhaps they want someone with global reach or local focus), years in business (perhaps they want a veteran professional vs. a younger professional who may have lower fees), location (maybe you want to find a storage company in your own neighborhood), and specialty (you want not just an appraiser, but an old master specialist), and a company who has great client ratings. You can “Refine by” all these options on the left hand side of all search results.

WHAT ARE THE PRIMARY NEEDS OF THE ARTIST AND IN WHAT WAYS DOES THE CLARION LIST RESPOND TO THEIR CONCERNS?

Artists are also looking for the right company for them as well and want to expand their options and find better or less expensive companies to work with. Artists tend to be interested in our list of framers, storage companies, marketing firms and law firms among others.

WHAT CRITERIA DOES THE DIRECTORY ESTABLISH FOR PRIVATE ART DEALERS AND ADVISORS AND WHAT IS THE CLARION LIST’S SCOPE OF SERVICES, AREAS OF SPECIALIZATION AND EXPERTISE?

We have a wide range of private art dealers – those who have their own inventory to sell, those looking to acquire inventory and those who are able to privately seek out particular works on behalf of a client. We list both dealers who work out of an office and those that appear to be galleries but are only available by appointment in our “Private Art Dealers” category.

HOW DOES THE RATING AND REVIEW SYSTEM WORK AT THE CLARION LIST? WHAT DO YOU HOPE IT PROVIDES?

We hope it provides transparency and accountability for the global art market. Any client or colleague of a listed company may submit a review; it takes just a few minutes and requires quick account log-in. clarionlist.com/reviews details the quick process.

YOUR EDUCATIONAL BLOG IS A VITAL ADDITION TO THE DIRECTORY, TOUCHING ON TOPICS AS WIDE-RANGING AS THE ART MARKET, AUCTIONS AND ART TRANSPORT. WHAT ARE SOME OF THE SUBJECTS YOU EXPLORE THAT YOU CONSIDER THE MOST IMPORTANT? WHAT ARE SOME OF THE TOPICS YOU PLAN TO ADDRESS IN FUTURE POSTS?

With a growing collecting class – especially among millennials – its important to educate about how to care for art before and after purchase. We try to highlight art services among our 35 listed categories. Some of our more popular topics are “how-to’s” and “why hire” regarding art appraisers, conservators and private dealers. We write one educational piece for month and its featured in our monthly e-blast available for sign-up here: http://eepurl.com/bePKFf

We also curate 3rd party content about growing and servicing art collections. Following our Twitter, Instagram, Facebook and LinkedIn pages are good ways to ensure you are up to date on these types of articles.

twitter.com/ClarionList

facebook.com/clarionlist

linkedin.com/company/the-clarion-list

instagram.com/the_clarion_list

IN OUR NEXT LRFA POST, JESSICA WILL ENLIGHTEN US ON FUTURE PLANS AND DIRECTIONS FOR THE CLARION LIST. THEY ARE EXPANDING SO RAPIDLY, IT MAY BE OUTDATED BY THE TIME THE LRFA BLOG POSTS! DO CHECK OUT THIS INNOVATIVE ONLINE DIRECTORY FOR YOURSELF, A VALUABLE RESOURCE IN OUR 2.0 WORLD!