An Uptick in Art Rental Appraisal RequestsAn Uptick in Art Rental Appraisal Requests

The final months of 2020 saw a significant uptick in art rental appraisals. While perhaps an unusual trend in the art market, this uptick didn’t much surprise estate planners. As Joe Biden emerged as the front-running presidential candidate by late summer, his proposals for tax reform elicited an increasing number of questions from high-net-worth individuals, including those with significant art collections, regarding the implications for their tax planning. 

In 2020, estate and gift taxes applied at a rate of 40% to the extent that the total value of a taxpayer’s gratuitous transfers (accumulated during life and at death) exceeded $11.58 million, or $23.16 million for married couples.¹ This threshold number (called the “unified credit”) ...