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Full-Text Articles in Entertainment, Arts, and Sports Law

Taxing The Unheavenly Chorus: Why Section 501(C)(6) Trade Associations Are Undeserving Of Tax Exemption, Philip Hackney Jan 2015

Taxing The Unheavenly Chorus: Why Section 501(C)(6) Trade Associations Are Undeserving Of Tax Exemption, Philip Hackney

Articles

Our federal, state, and local governments provide a subsidy that enhances the political voice of business interests. This article discusses the federal subsidy for business interests provided through the Internal Revenue Code (“Code”) and argues why we should end that subsidy. Under the same section that provides exemption from income tax for charitable organizations, the Code also exempts nonprofit organizations classified as “business leagues, chambers of commerce, real-estate boards, boards of trade, or professional football leagues.” Theory supporting tax exemption states that we should subsidize nonprofit organizations that provide goods or services that are undersupplied by the market. A charitable …


Artists, Art Collectors And Income Tax, Alan L. Feld May 1980

Artists, Art Collectors And Income Tax, Alan L. Feld

Faculty Scholarship

The federal income tax law treats artists and art collectors differently. Similar transactions concerning artworks produce disparate income tax results, depending on whether they involve the artist or the collector. On balance, these results seem to favor the collector over the artist. But notwithstanding the dismay of some artists and their advocates, the differences in result flow, in the main, from the differences in the source of the taxpayer's investment in the work.

The collector buys the work with after-tax income. Any gain is properly treated as an investment return and is eligible for capital gain benefits.' The collector, however, …