Disclaimer: New York Loan Company does not provide tax advice. Please consult your financial advisor.
For the serious art collector, a collection is both a passion and a significant portion of net worth. As we approach the end of the 2025 fiscal year, tax planning becomes a priority. One of the most effective tools for managing the financial side of an art portfolio is the collateral loan.
The Capital Gains Trap
If you need liquidity, selling a piece of art can be expensive. In the United States, collectibles are often taxed at a higher capital gains rate (up to 28%) than other assets. Selling a Basquiat to fund a business venture or pay a tax bill means losing a significant chunk of the proceeds to the IRS.
The Borrowing Advantage
Borrowing against the artwork is not a taxable event.
- Keep the Asset: You retain ownership of the art.
- Avoid the Tax: Since there is no sale, there is no capital gains tax triggered.
- Get the Cash: You receive the liquidity you need.
2025 Market Valuation
Given the stabilization of the art market in late 2025, valuations are solid. Lenders like New York Loan Company are confident in blue-chip, modern, and contemporary works. We offer loans ranging from $10,000 to over $1 million against fine art.
We also understand the logistical nuances of art lending. We can often arrange for evaluations at your storage facility or home for large collections, and we utilize specialized fine art storage facilities to ensure your pieces are preserved in climate-controlled environments during the loan term.
Maximize your financial efficiency this year. Don’t sell—borrow
