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The great wealth transfer
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Started by suspense39,

56 posts in this topic

stinkininkin

stinkininkin

Posted
Posted (edited)
10 hours ago, O. said:

As to Millennials' tastes driving the art market going forward, here's what I wrote 3 years ago:

I believe the value of Lee UXM/XM OA (and OA from other popular early-‘90s runs) will appreciate in the coming decades. Present day 30-something year old collectors who were in their formative childhood/adolescent years when they read these comic books in the early-‘90s, are now hitting their prime income-earning years. As nostalgia for childhood pursuits kicks in and their spending power grows, this group of collectors will spend increasing amounts on OA (and other collectibles) from the 1990’s. This demographic also represents the last time that there was a critical mass of young comic book readers. From the late-‘90s onwards, youths tended to favour electronic forms of entertainment, and comic books increasingly targeted adolescents and adults.

[https://comicbookinvest.com/2017/01/13/artist-spotlight-jim-lee/]

And the meteoric price jumps that late-'80s/early-'90s OA has since undergone bears this out :acclaim:

 

I think you were onto something here.  The surprise to me, being close to the center of the 90's market and Jim Lee in particular, is the rise of Wildcats art prices in the last few years.  It had a very modest growth curve for a few decades, but has recently taken off on a percentage basis.  Guess it finally started looking cheap compared to Batman and Xmen prices, but more importantly, seems to finally be hitting the nostalgia zone for 30 something year olds.  Makes me wish I'd kept more of the art! :devil:

Edited by stinkininkin
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Rick2you2

Rick2you2

Posted
Posted
On 12/21/2019 at 8:49 AM, Bronty said:

Tax policy is not equal to politics anyways.   There’s some overlap but debating tax policy isn’t overly political in and of itself.  
 

A wealth tax is a horrible idea is all I willl say about that!   

How is someone supposed to price the value of wealth?  And if they could, forcing sales on those assets to pay taxes would be a great way to destroy the value of physical assets. Too much would appear on the market. And then there are intangible assets, like intellectual property. What is the value of potential reprints not issued, or, say, having Superman in a possible new movie, or for that mater, any use of copyrights, trademarks or patents?

I could see a version of the proposal applicable to business since they have to generate financial statements, but being the accountant for that task sounds like a job waiting for a lawsuit for over or undervaluation.

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Bronty

Bronty

Posted
Posted (edited)
21 minutes ago, Rick2you2 said:

How is someone supposed to price the value of wealth?  And if they could, forcing sales on those assets to pay taxes would be a great way to destroy the value of physical assets. Too much would appear on the market. And then there are intangible assets, like intellectual property. What is the value of potential reprints not issued, or, say, having Superman in a possible new movie, or for that mater, any use of copyrights, trademarks or patents?

I could see a version of the proposal applicable to business since they have to generate financial statements, but being the accountant for that task sounds like a job waiting for a lawsuit for over or undervaluation.

Exactly.   Those are just the reasons that immediately come to mind.   It’s sheer folly.  
 

Regarding your last paragraph, the “straightforward” part?   1. accountants (I am one) are not valuators, and can’t be in the position of ascribing valuations. 2. Many private  businesses are inherently difficult to value and the estimates come in a very wide range as a result.    3. A valuation is a time consuming and expensive exercise, it can be 20k and months of time for a small private company.    4. The fact they are time consuming would make meeting filing deadlines a challenge.   5.  If you tax someone’s personal wealth base they will move to take things out of their personal wealth base - in a Cdn context a discretionary family trust immediately comes to mind.   6. How do you value someone’s interest in a discretionary family trust - past precedent says $Nil, if $Nil people will set up these structures in droves.    8. There already is a wealth tax in that there are deemed dipsotion rules at death in Canada and estate tax in the US.   9.  There is no way there are anywhere near enough qualified valuations people to take on the volume of work you’d create.   You’d have to increase the pool of those people ten-fold ?  100-fold?

 

There’s a million other issues .    This is just you and I scratching the surface for five minutes with almost no time or effort spent thinking through all the unanticipated consequences.   It would be an unmitigated disaster.

Edited by Bronty
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Stefanomjr

Stefanomjr

Posted
Posted

Wealth transfer discussion morphed into  wealth tax. Meanwhile,  wealth transfer tax = estate and inheritance tax.  Think 2020 limit is around  $11.6 million, married couples can protect twice that amount.

How many of you DKR OA owners have charitable remainder trusts to shelter your art from estate tax and transfer ownership to your offspring?  😜

Think the main takeaway of article is more to do with changing taste in art and  valuations waxing and waning... buy what you like... let the chips fall where they may. 
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Rick2you2

Rick2you2

Posted
Posted
15 hours ago, Stefanomjr said:

 

How many of you DKR OA owners have charitable remainder trusts to shelter your art from estate tax and transfer ownership to your offspring?  😜

How many of us, if we even think about the subject, just expect it to slip out the back door, along with jewelry and lots of other stuff?

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