imnotsoho t1_j979kr3 wrote on February 19, 2023 at 8:13 PM

Reply to comment by ledow in Jeff Koons: Visitor breaks iconic Balloon Dog sculpture in Miami by kangarooturd

Now that you mention it you may be right. I buy a painting for $1million, value goes to $20 million. I loan it out and someone lights it on fire. I collect $20 million, but since it is insurance payment for damages it is not taxable. Am I right?

PotatoBus t1_j97g92y wrote on February 19, 2023 at 8:59 PM

Capital gains may come into play, but I'm not an accountant.

sighthoundman t1_j99z5id wrote on February 20, 2023 at 11:27 AM

But if you donate it to a museum, you can donate the full $20 million AND not be taxed on the increase.

Changing that was considered when they changed the law from you deducting the blue book value of your donated car to only the amount actually received. Apparently the museum lobbyists are better than the PBS lobbyists.