Tax treatment of your sale will depend on the nature of the art - is it a collectible item? If so, the taxation will depend on how long you held this item - under one year (short-term capital gains) or more than one year (Capital gain on collectibles 28% plus 3.8% investment tax). If it is not a collectible item, then the sale is reported as ordinary income. And in either scenario, you can deduct your basis in this item, such as the cost to purchase and selling expense.
