Jeffrey Gonano of Wexford in western Pennsylvania won the lottery for the 1914 Picasso painting L’Homme au Gibus (Man in the Opera Hat). Mr. Gonano had purchased one of the 50,000 lottery tickets that had been sold for 100 euros (approximately $137) each. The lottery was held to benefit two Arts and Cultural Projects in a UNESCO World Heritage city in Lebanon.
However, because the painting is valued at approximately $1 million, the win may come with a tax bill as large as $365,000. And, unlike a lottery with a cash prize, Mr. Gonano cannot pay the taxes out of the proceeds, unless he decides to sell the painting. Of course, Mr. Gonano can avoid the tax liability by donating the painting to a charity or museum. Mr. Gonano is currently exploring his options.
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