Emigrant Bank Fine Art Finance | When Art Financing Makes Sense

Individuals

"When you pay high for
the priceless, you're
getting it cheap."

— Lord Duveen of Millbank

Emigrant Bank Fine Art Finance offers loans designed to help individuals pay for new art purchases over many years, fund new investments, manage short-term cash needs, and achieve longer term asset allocation and estate planning goals. Financing can eliminate the significant transaction costs and taxes associated with the sale of works of art. Transaction costs can be as high as 30% of the value of the assets sold. The federal long-term capital gains tax on art and antiques is 28% (versus 15% for stocks, bonds and real estate). Adding state and local taxes, a sale can trigger a total tax bill of 40% or more on the gain, depending on the seller’s domicile(1).

“I purchased a work of art by borrowing against my existing art collection.”

“I needed to raise cash to fund my business, so I borrowed against my collection. I avoided the taxes and transaction costs associated with selling art.”

“A lot of my net worth is in art. I borrowed against my collection and used the funds to invest in other asset classes, thus diversifying my wealth.”

“I borrowed against my art to fund my divorce settlement.”

1. You should consult your tax advisor.