Aby Rosen to pay $7M settlement over unpaid taxes on artwork

AG says developer didn't pay taxman on $80M worth of art

TRD New York /
May.May 03, 2016 02:15 PM

You can’t “sell” your art and have it too — that’s the state attorney general’s message to developer Aby Rosen in a new $7 million legal settlement.

The art-loving real estate mogul must pay $7 million to settle claims that he failed to pay taxes on an $80 million trove of sculptures, paintings and other artwork collected or commissioned since 2002, the New York Times reported. Art dealers who buy work solely for resale don’t have to pay sales taxes, but state Attorney General Eric Schneiderman said Rosen can’t skirt taxes by saying the works are for sale and then treat the pieces as possessions or use them to promote his real estate interests.

“Law-abiding New Yorkers should not be stuck footing the bill for those who fail to pay their fair share,” Schneiderman said.

One of the pieces involved in the lawsuit was a $2.5 million sculpture of a pregnant woman with an exposed fetus designed by Damien Hirst.

A spokeswoman for Rosen told the newspaper that he will continue to act as an art dealer and private collector. According to the New York Times, Rosen claims his collection is worth “well over $500 million” and includes more than 800 works. In 2014, the RFR Holding co-founder said he sells 30 to 40 pieces of art at any given time.

Rosen, co-founder of RFR Holding, often incorporates pieces of his art collection in his properties, which include the Seagram Building at 375 Park Avenue. In fact, the settlement has interesting timing: Rosen is hosting an event Tuesday night at the Seagram Building in honor of Frieze Week. [NYT]Kathryn Brenzel


Related Articles

arrow_forward_ios
From left: G.H. Palmer's Geoffrey Palme, RFR Holdings' Aby Rosen, Macklowe Properties' Harry Macklowe, Thor Equities' Joseph Sitt and Ellicott Development's Carl Paladino (Getty, iStock)

Harry Macklowe, Aby Rosen and Joe Sitt among 6,500+ developers, landlords who got PPP bucks

Harry Macklowe, Aby Rosen and Joe Sitt among 6,500+ developers, landlords who got PPP bucks
The Seagram Building at 375 Park Avenue with a photo illustration of RFR's Aby Rosen (Getty, Google, iStock)

Aby Rosen to build sprawling gym in Seagram Building

Aby Rosen to build sprawling gym in Seagram Building
Aby Rosen and Lever House at 390 Park Avenue (Credit: Getty Images, Google Maps)

Aby Rosen hands over Lever House to Tod Waterman and Brookfield

Aby Rosen hands over Lever House to Tod Waterman and Brookfield
Aby Rosen of RFR Realty and the Chrysler Building (Getty; iStock)

Aby Rosen is bringing back the Chrysler Building’s observation deck

Aby Rosen is bringing back the Chrysler Building’s observation deck
Beny Steinmetz and a rendering of The XI at 76 11th Avenue (JACK GUEZ/AFP via Getty Images; BIG)

Mining company asks court to reveal Beny Steinmetz’s NYC real estate plays

Mining company asks court to reveal Beny Steinmetz’s NYC real estate plays
Aby Rosen and the Chrysler Building (Credit: Lev Radin/Pacific Press/LightRocket via Getty Images)

Aby Rosen seeks to rework Chrysler Building ground lease

Aby Rosen seeks to rework Chrysler Building ground lease
RFR Realty’s Aby Rosen with 1600 Broadway and 900 Third Avenue (Credit: Getty Images, Google Maps)

Aby Rosen ditches $600M in building buys

Aby Rosen ditches $600M in building buys
The Chrysler Building and Aby Rosen (Credit: Rosen by Sean Zanni/Patrick McMullan via Getty Images)

Retail tenants disappearing from Chrysler Building

Retail tenants disappearing from Chrysler Building
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...