Have you ever wondered…
Is Canadian Art
Tax Deductible?
The short answer is YES!
If you are operating a business and the piece of art has been purchased with the intent of holding on to it for long-term, to benefit your place of business (ex. exhibited in a place of business where it will be seen by clients and/or employees).
Types of art purchases that are tax deductible include:
paintings
drawings
sculpture
or other similar works of art where evidence of the artist’s hand is apparent.
What is not tax deductible
a commercially reproduced print available at a national department store.
Other considerations:
The artwork must be valued at $200 or more and verifiable by invoice or a receipt.
The artwork must be produced by a Canadian artist, or an artist who was Canadian at the time the art was produced. Art that is not created by a Canadian artist is specifically excluded . Another great reason to support Canadian artists!
Art rentals are eligible for tax deductions based on the cost of renting the art, in the exact same way as art purchases are.
If all these conditions are met, the art will qualify as a Class 8 depreciable capital property for which Capital Cost Allowance (CCA) can be claimed
