WEI YANG ART
~ Asian Art Consulting & Appraisal ~

 

Why Wei Yang Asian Art Consulting & Appraisal


The dilemma of donating art to museum or a charitable organization. On August 12, 2017, New York Times published a very interesting story about how to make a charitable donation. Paul Sullivan, the author of Even for Collectors, Donating Art to a Museum Can Be Tough," identifies a few important issues relevant to donation. Sullivan concludes that donating art to a museum is complicated, easy or difficult? depending on what you are donating and to whom you are donating. Most collectors make donations to enjoy a tax deduction. If the work goest to a museum, the donor gets the full deduction. If the art goes to a nonprofit where art is not central to this mission, the donor is eligible for only the value of the piece when it was purchased. Then, what would happen to your intended donation? 1) Any museum would say "Thank you, thank you and thank you," if you donate a Picasso worth $6 or $7 million. 2) The donation would be easier when a museum asks for it first. 3) An average donation is difficult to get approval. Being turned dowm is a reality. 4) The musuem might ask for additional money in the form of an endownment to accept your art. 5) Museums are concerned about provenance or authenticity. How to ease art collectors' stress on donating art to a museum or charity? Art professionals have some practical suggestions: 1) donating to charities where the art may be displayed or sold to finance projects; 2) donating to a midsize regional musuem or an encyclopedic museum where your works will be a focus.

As an art historian (Ph.D. in Chinese art and Tibetan Art), I support the musuem's stand on the issues. In my professional opinions, 1) a museum should be selective by accepting only works of high quality and rarity. 2) A museum should be self-sufficient by having the resources to store the donated art of average quality, if accepted. 3) A musuem should honor the patrimony laws that protect artifacts while accepting donations of questionable provenance or authenticity.

We have the qualifications unmatched in the field. Our Art Appraisals are conducted by Qualified Art Expert with a Ph.D. in Chinese art, M.A. in Buddhist Art, a designation of Accredited Senior Appraiser of Asian Art & Appraisal Review and Management. We commit ourselves to a thorough investigation of your art work, large or small, few or many. We provide you with the best professional art consulting and appraisal services at a reasonable price. We limit our practice largely to the areas in which we are qualified, by dint of our Ph.Ds. and M.A. and hand-on research experience. We consider every art object an individual work of art. Our team of experts not only identify, document and evaluate your art works but also equip you with the knowledge of a trained specialist.

We comply with USPAP in reporting our findings. As USPAP states: "The purpose of the Uniform Standards of Professional Appaisal Practice (USPAP) is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers" (Preamble: U6). We develop, communicate our analyses, opinions and conclusions to our clients (intended users) in a manner that is meaningful and not misleading.

We serve you with a set of special language skills. We read several major Asian languages (Chinese, Japanese, and Tibetan). We are art historians trained in the analysis of Asian Art, particularly Chinese art, in its context and its authenticity. We investigate every important piece of evidence relavent to your propery (inscriptions, signatures, seals, and marks, techniques and forgery methods) before we make any recommendations. We comment on the authenticity and marketablility of your art work with supporting evidence. Our expert's opinions and suggestions would allow you to handle your art works from a position of strength.

We are independent Asian art specialists and serve with integrity, competence and objectivity. We work exclusively for you. We follow the Uniform Standards of Professional Appraisal Practice (USPAP) and comply with the code of ethics for appraisers in our practice. We take pride in providing objective, fact-based art consulting and appraisal services.

We don't cut corners in our appraisal practice. We comply with USPAP in reporting our findings. The Uniform Standards of Professional Appraisal Practice (USPAP) is developed by the Appraisal Foundation, a professional organization authorized by Congress as the source of appraisal standards and appraiser qualifications. We adopt standard industry principles, methodologies, and procedures for valuation in our practice.


Who Needs Art Appraisal

Owners Contemplating Sale -- Whether you have owned your Asian art for decades or recently inherited it, knowing your property's potential value is the basis for making an informed decision. Our art consulting and appraisal services offer an in-depth analysis of how your art object will fare in the current Asian art market--a fast-moving arena in which expert knowledge and advice are essential.

Parties Involved in Insurance Matters -- Both owners and insurance professionals need appraisals, whether obtaining insurance policies or making and adjudicating claims for damage or loss. If you have art objects (such as sculpture, paintings, prints, rare books, artifacts, antiques, or other collectibles), you should obtain a professional appraisal that accurately identifies, describes and provides current retail replacement values. A professional appraisal report may prove invaluable to you, your insurance providers, law enforcement officers, and your heirs in the event of accident, catastrophic loss, theft, or untimely death.

Individuals Executing Estate Distribution -- Should you be acting as executor or executrix for probate, planning your own estate, or seeking to distribute or liquidate inherited property, you should obtain a professional appraisal of the items under consideration. Such an appraisal is a legal requirement for the probation of certain estates. It will provide a descriptive listing and valuation for estate planning; it can also be relied upon as an impartial document to aid in the equitable distribution of assets among heirs.

Individuals Claiming Tax Deduction for Charitable Donation -- Gifts of art to museums or qualified organizations are an important way for institutions to expand and improve their collections. For the donor, such charitable contributions to qualifying institutions are tax deductible. A professional art appraisal report containing proper documentation, market research, and valuation will help assure that you, as a donor, receive full credit for your gift. Each art appraisal report is structured to comply with the requirements of the Internal Revenue Regulation Section 1.170A-13(c), the requirements of IRS Revenue Procedures 65-19 and 66-49, and all subsequent rulings. If IRS rules and formats are strictly followed, the tax advantages of museum and charitable donations can be significant and risk-free.

Art Collectors & Connoisseurs -- Many owners of Asian art (old and new, paintings or carvings, or other media) often don't have access to the elite scholars or professionals unless you are connected or resourcesful. Critical information on originality, quality, craftsmanship and value may not be available to a layperson. Specific details, such as inscriptions and seals on a painting, reign mark at the base of a porcelain work, signature of an artist or workshop, rank of the artist and the market appreciation for your artwork, are hard to obtain for the general public. These are the exact reasons why we became professional art consultants and appraisers. We strive to work hard and help many art owners like you to gain the access to the quality professional art services.


When Need an Art Appraisal

Each appraisal report serve a specific intended use. As an art owner, it is very important for you to understand your needs prior to commissioning an appraisal. Working with a qualified art appraiser will maximize the accuracy and objectivity of the valuation. Hiring an independent art appraiser will shield you from the risk of engaging a conflict of interest and a compromised professional service.

Our Appraisal for iIsurance Coverage or Claim provides you with the crucial information you need in working with insurance professionals. Every work of art is unique. A well-prepared value statement in an appraisal report will help you and your insurance agent take precautions to prevent or minimize loss. Our expertise, scholarly research on your object, and professional presentation of our value conclusion will guide you and your insurance agent to a full understanding of your art work and its potential.

Our Consultation Appraisal for Acquisition (Purchase) equips you with the knowledge of the sophisticated global art market. To begin with, inspiring works of Chinese art have an aesthetic quality and a history that are difficult even for Ph.D.s to appreciate and explain.  In addition, the art market is mysterious, difficult to learn about, and subject to significant fluctuation.  You can’t just look up the previous sales records for the object you wish to buy, since originality plays the key role in value. We are happy to serve as an extra pair of expert eyes on your behalf and help you build up a first-class art collection.

Our Consultation Appraisal for Disposition (Sale) allows you to present your art object to an auction house, buyer, or a dealer with an expert's knowledge and confidence. Our appraisal report for sale will tell you everything you need to know about your property, value and its market. Instead of being overwhelmed by auction house representatives or dealers who do not take the time to explain unfamiliar terminology from the world of Asian aesthetics and the modern art market, you are prepared for marketing your art work with confidence and knowledge of an insider. Our appraisal report prepares you to negotiate from a position of strength.

A well-researched art appraisal for disposition also opens new opportunities. Many people assume that an auction house will always offer the best value for their object, but that is often not true. Before you approach an auction house, you need to understand the adjustability of auction value estimates, the calculation of insurance costs and fees consignment and the range of commissions or the consquences of a "bought in" result. To prepare you and your art work for the market, we will alert you the potential issues relevant to your art work in clear language. Sometime,s, we may direct your attention to other options, such as private sale, marketing-it-yourself or charitable donation.

Our Art Appraisal for Charitable Contribution will support your claim for charitable contributions. We are "qualified" art appraisers who prepare "qualified" appraisals for tax-related purposes. With IRS and state rules becoming more and more sophisticated, we help you understand the issues involved and prepare you supporting evidence to your tax-deduction claims. It is always best to prepare for questions before they are raised. Defending a poorly prepared tax-related appraisal in a courtroom can be messy and expensive.

Our Art Appraisal for Pre-nuptial Agreements or Dissolution of Marriage will assist you deal with complex situations. We will follow your instructions, pay attention to details, and help you solve your puzzles to the best of our ability.

Our Appraisal for Bankruptcy (Forced Liquidation, Orderly Liquidation or Salvage/Scrap) will allow you to stand firmly on your feet and make a strong and convincing case in front of law.


Appraisal for Insurance Coverage & Claim-Settlement

Why Do You Need An Art Appraisal for Insurance? The article entitled Protecting Your Prized Possessions (by Michelle Halsey, Antique & Collectible Trader, Spring 2008), tells you why you need an appraisal for insurance, when you need an appraisal, how to choose an insurance broker/company, how to understand the value of your art object, and the coverage considerations you need to know before you insure your art work.

Understanding Art Insurance

1. Homeowner's Insurance Policy might be ideal for those with antiques and collectibles worth a few thousand dollars. But a homeowners's policy has exclusions and deductibles. Art insurance companies usually adopt a Risk Prevention Strategy to protect against any risk, such as damage or loss.

2. A Specialty Policy has broader coverage. It involves different valuations (such as) aggregate, current value and loss limit values to underwrite a specific type of collection.

3. High-net-worth Coverage is favored by leading art insurance companies, such as Chubb, AIG Private Client Group, AXA Art Insurance, and Lloyd's of London, sepicializing in high-value art, antiques and collectibles.

4. The "Inland Marine" Coverage means the coverage of all types of losses, excluding acts of war, nuclear attack or government confiscation. This coverage might be ideal for those who plan to ship collectibles back and forth between homes in New York and Palm Beach, Florida.

5. Liability Insurance for Fabrication, Installation, and /or Exhibition of Works of Art that Are in Public Areas is designed to cover static works of visual art (sculptures, mainly) that are in areas accessible to the public.

6. A Valuable Policy is structured to supplement homeowner's coverage if you have valuables that exceed $10,000; Atlantic Mutual recommends considering this coverage.

7. Ownership Dispute Insurance is a title insurance policy structured to address the chair of title and lien risks inherent in art as a form of personal property. It is a "Single premium, indefinite term policy." In other words, you pay once and get protection for as long as you possess the art work.

Insurance Companies Specializing in Art

1. Chubb Group of Insurance Companies might be the right company for you if your valuables are worth more than $1,000 (per item) or more than $5,000 (entire collection). Chubb does not require an appraisal for every piece that you itemize. For most possessions, they need a description of the item and a value. However, Chubb requires an appraisal for fine arts worth more than $100,000, jewelry worth more than $50,000, and any other item valued over $25,000.

2. Atlantic Mutual focuses on serving the personal insurance needs of individuals with substantial assets to protect. The Valuable Policy at Atlantic Mutual says it offers broad coverage on a worldwide basis and carries no deductibles.

3. AXA Art Insurance Corporation distinguishes itself as the only insurance company specializing exclusively in fine arts and collectibles. It serves all clients, from the first-time collector to the most established collectors.

4. AIG American International Group, Inc. are considered world leaders in insurance and financial services. It has opertations in more than 130 countries and jurisdictions. AIG Private Client Group provides comprehensive insurance products and services to help meet the unique risk management needs of high net worth individuals.


Art Appraisal for Charitable Donation (IRS Rules)

We are not IRS agents, and not in a position to interpret the IRS rules and regulations. However, we can help you understand tax rules and regulations. We will assist you from beginning to end with diligence and care. The art appraisal report prepared by our Asian art specialists satisfy the most up-to-date IRS requirements for charitable donations.

IRS Rules and Art Appraisal for Charitable Contributions (Information cited from IRS Publication 561, pp. 8-10): "IRS requires an appraisal from a qualified appraiser if you claim a deduction of more than $5,000. If you claim a deduction of more than $500,000 for a donation of property, you must attach a qualified appraisal of the property to your return. If you do not attach the appraisal, you cannot deduct your contribution, unless your failure to attach the appraisal is due to reasonable cause and not to willful neglect. "

You must receive the qualifed appraisal before the due date, including extensions, of the return on which a charitable contribution deduction is first claimed for the donated property. If the deduction is first claimed on an amended return, the qualified appraisal must be received before the date on which the amended return is filed.

You need to attach Form 8283, Section B, to your tax return if you plan to claim a deduction. Generally, you don't need to attach the qualified appraisal itself, but you should keep a copy as long as it may be relevant under tax law. The appraiser will complete Form 8283, Section B, Part III on your behalf, including signing the qualified appraisal and Form 8283.

An appraisal will give all the facts on which to base an intelligent judgment of the value of the property. The weight given an appraisal depends on the completness of the report, the qualifications of the appraiser, and the appraiser's demonstrated knowledge of the donated property.

IRS Form 8283 for Noncash Charitable Contribution
IRS Publication 561: Determining the Value of Donated Property
IRS Publication 526: Charitable Contributions


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