Did you know that supporting the arts could be fiscally advantageous? Yep, purchasing artwork could allow you to reduced your income taxes!
The Canadian government has recognized the importance of encouraging art and its creators by implemented tax incentives intended to promote the purchase of Canadian artwork.
Buying artwork is considered as an amortization expense for corporations or individuals who operate business. It qualifies as a tax deduction provided that the artwork was created by a Canadian artist, must be $200.00 or more in value and must be exhibited in a place of business where it will be seen by clients. If the purchase meets these criteria, the buyer is entitled to a declining deduction of 33% of the cost of purchasing the artwork at the provincial level and of 20% at the federal level.
Moreover, if the buyer is a GST registrant, he/she can recover the taxes paid at the time of purchasing the artwork by claiming input tax credits.
A PRECIOUS SUPPORT TO THE ARTS
Take advantage of the Capital Cost Allowance (CCA) to addorn your work place.
For more details, read « Why should business owners invest in Canadian art? » and view Canadian Income Tax Regulations regarding buying Canadian Art.
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