IRS wants $29 million in estate taxes for bald-eagle sculpture that … can’t legally be sold
posted at 9:45 pm on July 23, 2012 by Allahpundit
That’s one way to increase tax revenue from the rich. If you can’t get Congress to pass the Buffett Rule, why not just start taxing phantom income instead?
They want their money, even if you don’t get yours.
The object under discussion is “Canyon,” a masterwork of 20th-century art created by Robert Rauschenberg that Sonnabend’s children inherited when she died in 2007.
Because the work, a sculptural combine, includes a stuffed bald eagle, a bird under federal protection, the heirs would be committing a felony if they ever tried to sell it. So their appraisers have valued the work at zero. But the IRS takes a different view. It has appraised “Canyon” at $65 million and is demanding that the owners pay $29.2 million in taxes…
While art lovers may appreciate the IRS’ aesthetic sensibilities, some estate planners, tax lawyers and collectors are alarmed at the agency’s position, arguing the case could upend the standard practice of valuing assets according to their sale in a normal market. IRS guidelines say that in figuring an item’s fair market value, taxpayers should “include any restrictions, understandings, or covenants limiting the use or disposition of the property.”
The owners inherited a cool $1 billion in art from their mother but have had to sell nearly $600 million worth to cover the federal and estate taxes. As for the eagle, they can either (a) keep it and come up with $29 million, (b) sell it and go to jail for that, (c) refuse to pay the tax and go to jail for that, or (d) accept the feds’ valuation and come up with the $29 million, then donate the sculpture to charity and take a relatively small charitable deduction every year for the next … 75 years. I’m honestly curious to see if the IRS backs down now that there’s been some media attention to this or if they figure, as their boss does, that the public’s sufficiently hostile to rich people that they can play hardball here by demanding a tax on an asset that can’t legally generate income. Which way are we betting? Let me know in the comments!
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Sorry, I misread the expression. My sister was married to a Marine officers for more than 20 years–a commanding officer’s wife of a big domestic base for a few years. I suspect that she was one of these herself.
I read the expression as something related strictly to some creepy Obama network.
You squared me away. And, I suspect, my sister’s Marine officer son, who graduated from the USNA last year and is finished with TBS and IOC, is benefiting from some FRGs in his current assignment out on the West Coast.
Thanks for explaining things.
BuckeyeSam on May 21, 2013 at 7:52 AM
Hey, he’s made a whole career out of showing up at these events. I think he’s the one that made it popular to stand at the very southern point of Key West in gale force winds and tell people to find shelter.
It isn’t officially a weather-related disaster without Cantore reporting on scene.
Happy Nomad on May 21, 2013 at 7:52 AM
agree….
cmsinaz on May 21, 2013 at 7:56 AM
No bet. That was my very first thought when I heard that the rat-eared coward was going to start work early by speaking at 10am. I wonder if he’ll be dressed at that point or if he’ll be standing there in robe and slippers with a “World’s best Dictator” coffee mug.
Seriously though, these things are always heart-breaking but all the more so when it happens in a place like OKC where real people live. I really never felt empathy that a bunch of rich people lost their vacation homes on the Jersey shore but the rat-eared coward better do right by the people of Moore.
Happy Nomad on May 21, 2013 at 7:58 AM
Nixon was a choir boy compared to Obama
Basilsbest on May 21, 2013 at 8:00 AM
Well I definitely am cranky this morning. With that context let me tell you what I think is going on in the White House this morning. They are high-fiving themselves that something other than their corruption is going to be in the headlines this morning. The rat-eared coward is going to milk the deaths of those 91 as if they were gunned down in a CT elementary school. He will interefere with recovery operations by showing up to see the damage. He will call for legislation mandating storm shelters in all schools or something. In short, where you and I see heart-breaking destruction the filthy bastard sees a golden political opportunity.
Told you I was cranky.
Happy Nomad on May 21, 2013 at 8:03 AM
Here in NY, they’re still showing TV commercials asking people to donate for Hurricane Sandy ‘relief’ to ‘rebuild’.
I hope any funds allocated to LA don’t get bogged down because Congresscritters see an opportunity to pile on the pork.
Liam on May 21, 2013 at 8:04 AM
I have the same thoughts about how this will be handled from the WH and in the LSM. Then the coming fight to stop pork from being included in relief spending, with Obama telling of the evil of heartless Republicans. And, of course, our trolls with their usual love Obama/you’re evil brand of ghoulishness.
I’m quite sick of it all, and of them. All of ‘em.
Liam on May 21, 2013 at 8:08 AM
LA=OK
Coffee…more coffee…
Liam on May 21, 2013 at 8:08 AM
Was thinking the same thing HN…..didn’t want be cynical but I figured they were relieved to be off the radar for a little while
cmsinaz on May 21, 2013 at 8:14 AM
Our trolls are already out there blaming the GOP for not fully funding FEMA and instead wasting the money on stuff like the DoD.
I think the bigger problem is that the rat-eared coward has picked winners and losers when it comes to disaster relief. He couldn’t pour enough money into NY and NJ after Sandy but has steadfastly refused money to red states for wildfires and other disasters. I think OK becomes a winner since the bastard needs a distraction.
Happy Nomad on May 21, 2013 at 8:17 AM
I hope it sticks in his craw.
Liam on May 21, 2013 at 8:19 AM
Took the words right out of my mouth. We care for ourselves and each other. They cut spinal cords of newborn babies, leave valiant men to die when help is available, and rant about fairness and justice. Hell is too good for them, but I hope they rot there.
indypat on May 21, 2013 at 8:20 AM
I’m sure this time, we won’t be hearing about a racist president who left black people to die. There won’t be any LSM ‘in-depth’ reports of how badly FEMA messed things up, even the distribution of water.
The media will lay on the schmooze for Obama, while trying to blame Republicans for ‘underfunding’ the effort before a single penny gets to Moore.
Liam on May 21, 2013 at 8:27 AM
No problem Buckeyesam.
smoothsailing on May 21, 2013 at 8:34 AM
This presumes that Obama’s administration was capable of telling the truth at some point. Doubtful.
College Prof on May 21, 2013 at 8:35 AM
RUSH IS RIGHT!!!
Obama should not be compared to Nixon: he is more like Chavez and Putin!!!
landlines on May 21, 2013 at 10:03 AM
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