The Senate Finance Committee has begun to look into the use of so called “museums” that house the personal art collections of wealthy individuals. The museums have proliferated in recent years after wealthy patrons realized that setting one up can create tax savings while still allowing virtual ownership of the art. In some cases, the museums have been set up on the grounds of the family estate with limited access to the public including the requirement that all visits be arranged in advance. Sen. Orrin Hatch, chairman of the committee, expressed concern that the wealthy are using tax breaks set up to benefit legitimate organizations for dubious intents. However, he stopped short of stating a desire to remove tax breaks given to donors of educational and cultural institutions with his primary motivation being to suss out the problems and prevent abuse.
See Patricia Cohen, Tax Status of Museums Questioned by Senators, The New York Times, November 29, 2015.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
