Ultra-Rich Are Enjoying Tax Breaks by Splitting Their Art in Two

For billionaire art lovers, the Rothko, Basquiat or Banksy hanging in the front hall can be a source of pride and joy. It’s also a great way to get a tax break.

Lawyers, already scrambling to help clients prepare for tax changes in Washington that threaten to soak the rich, say they’re increasingly getting requests from art collectors to find strategies to shield their wealth from the Internal Revenue Service. The solution: giving away just a fraction of their ownership.

It’s an opportunity to get a tax benefit tied to surging art values without donating a painting outright. In ...