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Munch’s ‘The Scream’ Is Still Reverberating Around the World

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May 3rd, 2012

Why can’t I do this?

During a highly intense 12 minutes, the 1895 artwork was sold at Sotheby’s in New York City on Wednesday for a record $119,922,500. Neither the buyer’s name nor any details about the buyer was released. One of the most iconic images in art history, Edvard Munch’s "The Scream", has now become the most expensive artwork ever sold at an auction. The previous record for an artwork sold at auction was $106.5 million for Picasso’s "Nude, Green Leaves, and Bust," sold by Christie’s in 2010.

The Scream

Munch’s image of a man holding his head and screaming under a streaky red sky is one of four versions by the Norwegian expressionist painter. The auctioned piece at Sotheby’s is the only one left in private hands. The image has become part of pop culture, "used by everyone from Warhol to Hollywood to cartoons to teacups and T-shirts," said Michael Frahm of the London-based art advisory service firm Frahm Ltd. "Together with the Mona Lisa, it’s the most famous and recognized image in art history."

Pop Culture

"As popular culture, it provides an analogy for both individual and collective experiences of, variously, loss, pain, grief, modernity, nature gone awry, the body out of control, and Existential struggle," said Patricia Berman, chair of the art department at Wellesley College and a director of the Edvard Munch Research Institute in Oslo.

The auction

A buzz swept through the room when the artwork was presented for auction as two guards stood watch on either side. Bidding started at $40 million with seven buyers jumping into the competition early. The battle eventually boiled down to two phone bidders as the historic hammer price was finally achieved after more than 12 minutes. The record price includes the auction house’s fee. Sotheby’s said the pastel-on-board version of "The Scream" is the most colorful and vibrant of the four and the only version whose frame was hand-painted by the artist to include his poem, detailing the work’s inspiration. In the poem, Munch described himself "shivering with anxiety" and said he felt "the great scream in nature."

Previous owner

Norwegian businessman Petter Olsen, whose father was a friend and patron of the artist, said he sold the piece through Sotheby’s because he felt "the moment has come to offer the rest of the world the chance to own and appreciate this remarkable work. I have lived with this work all my life, and its power and energy have only increased with time," Olsen said.

Proceeds

Proceeds from the sale will go toward the establishment of a new museum, art center and hotel in Hvitsten, Norway, where Olsen’s father and Munch were neighbors. A total of nine works now have sold for $80 million or more at auction, according to Sotheby’s.

Besides "The Scream" and Picasso’s "Nude, Green Leaves, and Bust," only two other works have sold for more than $100 million at auction. Those are Picasso’s "Boy With a Pipe (The Young Apprentice)" for $104.1 million in 2004 and Alberto Giacometti’s "Walking Man I" for $104.3 million in 2010.

I sit painting in my little studios day after day. I’m never going to make that list, right?

Tags: Edvard Munch, Munch, Painting, Sotheby's, The Scream
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Tax Evasion Is One Thing, but This Is Pretty Extreme

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May 3rd, 2012

Wealthy Americans lining up to surrender their passports

It seems that wherever you are, the IRS will find you eventually. About 1,780 expatriates gave up their nationality at U.S. embassies last year, up from 235 in 2008, according to Andy Sundberg, secretary of Geneva’s Overseas American Academy, citing figures from the government’s Federal Register. The embassy in Bern, the Swiss capital, redeployed staff to clear a backlog as Americans queued to relinquish their passports.

Non-resident citizens

The U.S., the only nation in the Organization for Economic Cooperation and Development that taxes citizens wherever they reside, is searching for tax cheats in offshore centers, including Switzerland, as the government tries to curb the budget deficit. Shunned by Swiss and German banks and facing tougher asset-disclosure rules under the Foreign Account Tax Compliance Act, more of the estimated 6 million Americans living overseas are weighing the cost of holding a U.S. passport. "It started with the fallout from UBS and non-U.S. banks feeling it is too risky to deal with Americans abroad," said Matthew Ledvina, a U.S. tax lawyer at Anaford AG in Zurich."

Ceremony

During a 10-minute renunciation ceremony in a booth with bullet-proof glass windows, embassy staff ask exiting Americans whether they are acting voluntarily and understand the implications of giving up their passports. They pay a fee of $450 to renounce and may incur an "exit tax" on unrealized capital gains if their assets exceed $2 million or their average annual U.S. tax bill is more than $151,000 during the past five years. They receive a certificate within three months, telling them they are no longer American citizens.

Taxman Cometh

While the U.S. taxes citizens regardless of where they reside, overseas income of as much as $95,100 is exempt and credits help compensate for foreign taxes paid. Americans living in Switzerland can’t take advantage of the absence of a capital gains tax in the Alpine country or tax deductions allowed on pension contributions. "Every dollar you save, you lose to the U.S. tax man," said tax lawyer Ledvina. "That’s one reason why people give up citizenship."

Non-disclosure

Americans, who disclose their non-U.S. bank accounts to the IRS, must file the more expansive 8938 form beginning this year that asks for all foreign financial assets, including insurance contracts, loans and shareholdings in non-UNN.S companies.

Imperial Overreach

The 2010 Fatca law requires banks to withhold 30 percent from "certain U.S.-connected payments" to some accounts of American clients who don’t disclose enough information to the IRS. "There is incredible frustration at the audacity and imperial overreach of this law," said David Kuenzi, a tax adviser. Failure to file the 8938 form can result in a fine of as much as $50,000. Clients can also be penalized half the amount in an undeclared foreign bank account under the Banks Secrecy Act of 1970.

American Citizens Abroad

This is a Geneva-based organization that campaigns for taxation based on residency, said the government doesn’t always distinguish between U.S.-based tax dodgers with offshore accounts and expatriates that need foreign banking services.

Tags: Income tax, IRS, Tax evasion, US Citizenship
Posted in Business, Economy, Finance, Money, Personal / Internet | No Comments »

How to Become a Member of the YouTube Millionaire Club

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May 1st, 2012

This man, Peter Cilliers, earns in excess of $100,000 a year doing what he loves

In 2006, Cilliers, from Pretoria, South Africa, decided to begin his own weight loss campaign. As motivation, he created a video diary to record his journey. Now, his YouTube channel, SixPackFactory, boasts more than 48 million views. “I thought I might do a daily video log of my weight-loss program,” said Cilliers. “I continued for about 112 days and that was the start.”

From hobby to major success

After a three-year hiatus Cilliers returned to YouTube last year. Through weekly updates, including home workout videos and related content, he is an example of an ordinary internet user who has turned his “profitable hobby” into web-based financial success. “There is still a lot to learn about making money on the internet. As people get to know things like YouTube, they realize there is an opportunity to share something new and special.”

YouTube viewers

There are now more than four billion views on YouTube each day. And the online video powerhouse has established itself globally. It is available in 43 countries and 60 languages. “My most watched video has around 5.3 million views and, funny enough, this is also one of my most unprofessionally made videos, which shows as long as your video provides people with an answer they will watch it,” said Cilliers. “In the past 12 months my views have gone from around 15,000 per day to around 60,000 per day without any paid advertising.”

Camcorder

Cilliers shoots all his videos at home with an HD camcorder; 90 percent of the material “on my own with no help at all from anyone else”. Through the YouTube Partners Program, users like Cilliers can run adverts with their videos. Users make money based on the number of hits they get. “Some videos go completely viral within a week. When there is something quirky, different and unusual, it grabs people’s attention, gets a bit of a social media boost and then goes viral. In other cases, people work to build up a following.” Either way, more viewers means more money.

From upload to loaded

Simply making videos for YouTube is a thing of the past – the website has become a way to make a living, too. With the help of YouTube’s Partner Program (YPP), more than 30,000 users are making money. To join YPP a user must meet key requirements before they can start making revenue. They must create original videos “suitable for online streaming” and containing appropriate material.

YPP members

Previously, YPP members were required to regularly upload content to their YouTube channel and receive thousands of hits to be a YouTube partner. But according to the YouTube Creators blog, starting on April 12, the additional requirement was dropped. Now YouTube users in 20 countries can become partners by simply enabling at least one of their videos for advertising. Through YPP, content creators share revenue with YouTube from the advertisements that run over or next to their videos.

Tags: Camcorders, Viral, Weight loss, YouTube
Posted in Business, Economy, Employment, Finance, Money, Personal / Internet | No Comments »

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The AdvanceLoan Finance Blog

Munch’s ‘The Scream’ Is Still Reverberating Around the World

Tax Evasion Is One Thing, but This Is Pretty Extreme

How to Become a Member of the YouTube Millionaire Club