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DID YOU KNOW THAT THE PURCHASE OF ORIGINAL ART IN CANADA IS TAX-DEDUCTIBLE

 

The Canadian government has implemented tax incentives to promote the purchase of original Canadian works of art.

 

The Canada Revenue Agency (CRA) has established that taxpayers who purchase or rent Canadian artworks, either for their personal office or for the common areas of their places of business (such as the lobby or hallway) can claim a tax deduction for the cost of purchasing or renting the work.

 

Buying artwork is considered a capital expense for corporations or individuals who operate a business. An individual or organization may qualify for an annual tax deduction provided certain criteria are met.

 

Moreover, if the buyer is a GST and QST registrant, he can recover the taxes paid at the time of purchasing the artwork by claiming input tax credits. Lastly, if the work is rented instead of being purchased, the rental expenses are also deductible as long as the expense was made for business purposes.

 

 Criteria:

 

  • The art must be created by a Canadian artist

  • Be over $200 dollars in value

  • Exhibited in your place of business that can be seen by clients and intended to earn income. (CRA business expenses clarifications)

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