An artwork creates a positive, productive environment essential to a company’s success. Including artwork in your place of business is also an opportunity to extend and project your corporate identity within the community. Displaying the works of local artists shows that a business is both interested and involved in its community.
Whether you are moving to a new location, remodeling a current facility or simply redecorating your current office or building, it is important to remember the impact of artwork to complete and enhance the space. Our professional consultants will work within your budget to create the greatest impact within your professional space while ensuring the best reflection of your company.
Though some businesses rent art to avoid the capital outlay required to purchase it, many take advantage of the capital cost allowance (CCA) to build their own private collection. Hopefully, a better understanding of how to claim the CCA for Canadian art will encourage our corporate readers to do the same.
The rules contained in paragraph 1102(1)(e) of the ITR provide that artwork acquired by a taxpayer, including but not limited to prints, etchings, drawings, paintings, or sculptures, may qualify as assets eligible for CCA at a rate of 20% if all of the following conditions are met:
• The artwork is acquired for the purpose of gaining or producing income,
• The artwork is not described in the taxpayer’s inventory,• The cost of the artwork to the taxpayer is $200 or more, and
• The individual who created the artwork is a Canadian.