Eric Beaton, CPA
Canadian art is one of the few opportunities under federal tax law that allows deductions for purchasing an appreciating asset, says accountant Eric Beaton.
Many companies with profits are looking for ways to reduce their tax burden as tax season approaches, says Beaton.
For qualifying artwork, companies can deduct for tax purposes an amount annually for depreciation. This amount is normally equal to a 20 per cent declining deduction.
To qualify, artwork must:
- Cost $200 or more
- Not be held for resale or otherwise included in inventory
- Be acquired for the purpose of gaining or producing income from an arm’s length individual
- Be created by someone who was Canadian at the time.
The complete article is at: https://cascadeaccounting.ca/2019/11/25/investing-in-canadian-art-a-tax-perspective/
Source: Cascade Accounting