Tax Benefits

Beyond its obvious aesthetic attributes, there are a number of benefits to acquiring art for your workplace. In the business and professional world, art does not merely serve a decorative function. Art in the workplace creates harmony in the space, inspires creativity in the employees and invites dialogue with clients.

Whether you are a small business, a large corporation, a restaurant, hotel, office, medical or dental practice, ART can set the perfect ambience and tone in the workplace for clients and employees alike. It can serve to project the company’s brand. In addition to all of these positive reasons for acquiring art for your business, did you know that you can enjoy a tax benefit?

Corporations purchasing Canadian artwork can enjoy the tax benefit of deducting capital cost allowance at a rate of 20% per year, provided the following conditions are met as outlined in Regulation 1102(1)(e) of the Income Tax Act of Canada:

• The artwork is acquired by the corporation as a business investment, not a personal one.

• The artwork is not described in the corporation's inventory

• The cost of the artwork to the corporation is $200 or more, and

• The individual who created the artwork is a Canadian.

What a wonderful way to support Canadian artists, and thereby enhance your corporate image while gaining tax benefits for your business!