Bloomberg reports that Brooke Astor's son Anthony Marshall faces possible criminal charges over the income tax reporting of the sale of a $10 million painting by Childe Hassam in 2002:
"Marshall told his mother's tax preparer the painting, purchased by Astor in March 1970 for $172,000, was bought for $5 million, according to Alan Pollack, a lawyer for Samuel Cohen & Company, which prepared the returns. The higher purchase price would significantly reduce the capital gains tax on the $10 million sale by Marshall. Samuel Cohen & Company has received a subpoena from [Manhattan District Attorney Robert] Morgenthau's office, Pollack said."
Earlier news reports said the cost basis for the painting on the 2002 tax return was close to $7.5 million. See earlier post here.
A guardianship proceeding brought this summer against Marshall by his son was settled in October. See here.
