Whitehall Blog

Archive for May, 2012

V&M The Vintage and Modern Site

Thursday, May 31st, 2012

Bill Indursky, the guru of trends in the collecting and design markets and co-founder of Vintage and Modern (V&M) website has lectured numerous times at the Hight Point Antique and Design Center,  as have I.  Happily he asked their very fine writer, Suzanne Charle, to write an article about my most recent lecture on What To Know Before You Buy.  It is a fun read and you can then really catch up with their strong web presence by going to:

http://designintell.vandm.com/2012/05/antiques-what-to-know-before-you-buy/

It is worth your time to learn more about this excellent site.

Happy browsing

David

Thanks for Your Support

Tuesday, May 8th, 2012

We are all grateful at Whitehall for the many words of support against the sadly enacted Amendment One enshrining discrimination into our Constitution.  Since our Constitution was changed about 1977 to eliminate the prohibition passed by constitutional amendment in 1875 banning inter-racial marriage, North Carolina has enjoyed a constitution granting rights to it’s citizens–that short lived tradition ended today.

To those who picked up the 200 signs that Paul and I had made against this amendment, even more thanks!

High Point Furniture Market

Tuesday, May 1st, 2012

Another of the semi-annual furniture markets has come to a close in High Point, NC.  For the fourth time we have participated in the Antiques and Design Center located in Historic Market Square, the fabulous 19th century brick structure in the heart of downtown High Point.  This year we combined forces with The Grissom Collection, one of America’s leading vintage/estate jewelry dealers.  We greatly expanded our booth size and moved to the entrance to the building in an area filled with natural light and light colors.  As you can see in the attached photos we updated our look blending the best from the 18th centuries through Art Modern–and it was a hit.  We added many new designers to our contact lists, made many more sales than ever before.  You will continue to see our emphasis on a fresh upbeat look throughout the coming year!

Art Modern Bar Cabinet--now in Virginia!

Center Entrance view toward our booth

Looking Down Through Our Booth

Armoire headed to Savannah and Blue Urns to Quebec

Elm and Ash Buffet a deux corps (storage for wine and scotch for our clients)

Taxes and Depreciation for Business–Another reason to buy antiques!

Tuesday, May 1st, 2012
A friend who is a tax lawyer passed this on recently and it is as fine and concise a description of the value of purchasing antiques for your business office that I have encountered.  While one can argue over potential appreciation for a given antique, the point remains strong and valid.  One of our favorite clients has a brilliant contemporary furniture business and he has always blended fine antiques with the best contemporary furnishings in his offices and conference facilities.  He is just plain smart!
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Let’s say that you have narrowed the purchase of your business desk to either an antique or a regular desk. Each desk sells for $5,000. Which desk gives you the best business result? Is the difference worth thinking about?
First, you should know that some relatively recent appeals court decisions allow you to depreciate and expense the desk, regardless of its antique status. Thus, you can deduct the $5,000, antique or not, but that’s where the similarity ends.
There can be a huge difference in financial results at the time of resale.
For example, in 10 years, the antique desk might increase in value to $15,000, whereas the regular desk could decline in value to $500. But to see the true financial results, you need to look at the after-tax numbers.
Let’s say you are in the 35% income tax bracket and the 15% capital gain bracket at the time of sale. On the $15,000 proceeds from the sale of the antique desk, your federal taxes would be
  • $1,500 on the $10,000 capital gain part of the profits ($15,000 selling price minus $5,000 original basis times 15%);
  • $1,750 on the $5,000 of depreciation recapture ($5,000 depreciated in full, taxed at the ordinary income tax rate of 35%).
After taxes, you pocket $11,750 on this sale of your antique desk ($15,000 minus $1,500 minus $1,750).
On the sale of your regular desk, you pocket only $325 after taxes ($500 sales proceeds minus $175 in recapture taxes).
The antique desk gives you 36 times more cash ($11,750 compared with $325). Imagine an entire office full of antiques!
Tax knowledge says to you: If you can buy an antique car, clock, rug, desk, cabinet, bookcase, paperweight, conference table, chair, umbrella stand, coatrack, library table, or other asset that will function just as well as a new purchase, take the antique!

Sincerely,


W. Murray Bradford, CPA
Publisher
Tax Reduction Letter