Fiscal advantages in purchasing works of art

A taxpayer, whether an individual, a partnership, a corporation or a trust, acquiring an eligible work of art, may, if they meet certain conditions, claim 20% depreciation annually of the purchase price from the federal government, and 33.3% from the government of Quebec. The half-rate rule however, limits the deduction that can be claimed by the taxpayer the first year at 10% federal and 16.67% in Quebec.

What is an eligible work?

-Prints, etchings, drawings, paintings and other works of art of similar nature, the cost of which is at least $ 200.00;

-Tapestries or hand-woven carpets, hand-made, with a cost of at least $ 215.00 per square meter (10.76 sq. Ft.);

-Etchings, lithographs, wood carvings made before 1900;

-Furniture or other manufactured items produced more than 100 years prior to the date of purchase. the cost of which is at least $ 1000.00.

Terms and Conditions

-The work of art must have been produced by an artist who was a Canadian citizen or a permanent resident on the date it was created;

-The work must have been acquired from an arm's length person;

-The work must have been acquired for the soul purpose of earning business income, for example to decorate a reception area, a meeting room, corridors or a shareholder's office and must be in plain view of the customers.

The purchaser cannot bring the work of art to his personal residence, unless he has an office where he entertains clients, as in the case of some self-employed persons (lawyers, accountants, consultants, etc.)

 

 

767,  Paul-Desruisseaux

Sherbrooke (Québec) J1J 4L9

Tel.: (819) 564-1432

Fax. : (819) 564-7398

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