DEDUCTION RULES FOR ART PURCHASES
FOR BUSINESSES ART CAN BE TAX DEDUCTIBLE
It must be an original piece of art:
painting, sculpture, graphics or similar.
Art purchases are tax deductible!
It must be a first-time purchase directly from the artist or through a gallery, it can be a work of art that is part of the company’s building – then you can depreciate according to the same rules as depreciation of buildings, 5% per year. It could be a piece of art that is hung up – then you can depreciate in line with depreciation of operating equipment, 25% per year.
DISCLAIMER RULES
The deduction rules provide your business with a number of benefits and opportunities. For example, art can have a positive signal value towards your employees and the outside world:
One option for you is:
Decorate your company’s premises and buildings with quality art – it gives you something beautiful to look at and improves the working environment. Engage employees in decorating rooms and purchasing artwork. Support a local artist. Support a specific art form.
ARTWORKS THAT ARE HUNG OR DISPLAYED
Expenses for the purchase of artworks that are hung (typically paintings) or displayed (typically sculptures or installations) on the company’s premises can be depreciated using the so-called balance method up to 25% per year. In other words, according to the same rules as inventory. Full depreciation can be taken in the year of acquisition, even if the purchase is made at the end of the financial year.
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