Paul L. Caron
Dean





Tuesday, January 21, 2025

Will The Destruction Of Hunter Biden's Artwork In The L.A. Fires Generate A Casualty Loss Tax Windfall?

Jonathan Turley (George Washington; Google Scholar), For Sale: Could the Burning of “Millions” in Hunter's Art a Windfall?:

HunterThere is an interesting New York Post report that roughly 200 of Hunter Biden’s art pieces were destroyed in the Los Angeles wildfires. The value of the art stored near the home of Hunter’s patron and lawyer, Kevin Morris, is being claimed in the “millions of dollars.” The question is whether, with reports of a collapse in the value of Hunter’s art with the departure of his father from office, the fire might prove the ultimate windfall for Hunter and his “clients.” ...

The drop in the value of art reflects not only the volatile art market but also the fluctuating influence-peddling market. The Bidens are finally cashing out of Washington. ...

[T]he story raises an intriguing question of whether the art was insured and, if so, at what price. The collapse of the influence-peddling market was expected to collapse the value of Hunter’s art. However, this fire came just before Joe Biden left office and the drop in value was expected to occur.

If insured, the art could bring the full influence-peddled value and Biden art holders could be saved by an act of nature. ...

There is also the possibility of writing off the losses on taxes. There could be the ultimate irony in such a claim if it could be made.  Generally, to claim a casualty loss as deductible, there must be a federally declared disaster. On January 8, Joe Biden declared a federal disaster. If this art is covered (and I am no expert), Hunter and his allies could seek deductions for art tied to an alleged influence-peddling scandal by citing a declaration of the very person who was the subject of that influence peddling.

Hunter and his allies could find the ultimate truth in the insurance slogan “Your Safety Net in a World of Change.”

Congressional Research Service, The Casualty and Theft Loss Deduction (Feb. 2024)

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