Art as a Tax Incentive

I’m sure you’ve walked into an office and seen some beautiful artwork on the walls or sculptures in the lobby. Did you know that if you operate a business in Canada, buying original artwork qualifies as a tax deduction provided that certain criteria are met. Primarily, the artwork must have been created by a Canadian artist, it must cost over $200 and it must be displayed where it will be seen by clients.IMG_1122

Some business owners rent art so that they can rotate and introduce different pieces throughout the year, and of course this can be used as a business expense, however investing in Canadian art can be even more beneficial from a tax point of view. Many companies take advantage of the Capital Cost Allowance (CCA) to build their own private collections. If you’re a professional or business owner, you can purchase original Canadian art, immediately claim the HST then amortize the artwork over 3 to 5 years.

IMG_9623This is definitely something worth talking to your accountant about. Not only would you be surrounding your work space with beautiful artwork and building a valuable asset for your business, but you would be supporting and encouraging Canadian artists. One more thing – don’t limit yourself to just paintings on the wall, add a few sculptural pieces and your office will cover all three forms of visual art.