Artists Fight $1.9 Million Tax Bill Linked to Studio Business

Two California-based artists are challenging a total $1.9 million tax bill for multiple years, arguing the IRS erroneously rejected deductions they made for a death benefit trust and captive insurance arrangements for their studio.

Sterling Ruby and Melanie Schiff Ruby filed three separate Feb. 19 petitions with the US Tax Court, arguing the IRS incorrectly disallowed the deductions related to Sterling Ruby Studio Inc., resulting in underpayments and penalties for the 2018, 2019, and 2020 tax years.

Sterling Ruby works in a variety of mediums including sculpture, painting, ceramics, and fashion, while Melanie Schiff Ruby works in artistic photography.

The ...