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  • Beacon Original Art

    Location: Calgary, AB

    Applications are open for all painters, sculptors, photographers, ceramic, glass, jewelry and textile..
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  • Passion to Perform

    Location: Toronto, ON

    Artists are welcome to submit paintings, drawings, sculptures and photography as entries to..
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  • Toronto Outdoor Art Fair’s 61st Call for Artists

    Location: Toronto, ON

    NOW OPEN: Toronto Outdoor Art Fair’s 61st Call for Artists Join Canada’s longest-running..
    View notice

  • Lobby Gallery Meet The Artists

    Location: Regina, SK

    Meet the artists of the Regina Art Collective and view their exhibit of..
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  • Darrell Bell Gallery Dispersal Auction

    Location: Regina, SK

    Saskatchewan Network for Art Collecting is hosting an online dispersal auction of artworks..
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  • 20th “Solo Art Series” – An Opportunity to Shine

    Location: Palm Springs, CA

    Light Space & Time Online Art Gallery announces its 20th “Solo Art Series”..
    View notice

  • Call for Art – 12th Annual “CityScapes” Online Art Competition

    Location: Palm Springs, CA

    Light Space & Time Online Art Gallery announces an art call for the..
    View notice

  • Passages – online art exhibition

    Location: Brooklyn, NY

    Applications are now open for our online exhibition “Passages”. This is a curated..
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  • 7th Annual Artist's Choice Art Competition

    Location: Palm Springs, CA

    Fusion Art invites submissions for the 7th Annual Artist’s Choice art competition for..
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  • “People” International Call - Art & Literature Journal - Deadline December 31, 2021

    Location: Toronto, ON

    | Theme: Portraits and other imaginings of people tell such great stories. They..
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  • Seeking Indigenous Artist

    Location: Burnaby, BC

    My team has a project coming up that requires an indigenous artist. The..
    View notice

  • Positively Petite Miniature Exhibition

    Location: Coquitlam, BC

    Admission: Free November 12 – December 16 Positively Petite is an annual exhibition unique..
    View notice

  • The Art Guild of Scarborough’s Annual Fall Show and Sale 2021

    Location: Toronto, ON

    The Art Guild of Scarborough is very excited to be holding its Annual..
    View notice

  • The Marketer Art Competition 2021 #TMAC2021

    Location: , ON

    The Marketer Art Competition is solely FOR Canadian Artists made BY Canadian Artists..
    View notice

  • Vancouver Photo Lab - High Quality Printing Lab

    Location: Port Coquitlam, BC

    High Quality & Best Canadian Photo Lab in Vancouver to get custom canvas..
    View notice

  • Open Call for Art - 6x6x2022

    Location: Rochester, NY

    Call for Artists! Call for Art-Lovers! Call for Everyone! We want you all to..
    View notice

  • Niagara Pumphouse Arts Centre - ART SALE

    Location: Niagara-on-the-Lake, ON

    Deck the halls this holiday season with unique artwork. You are invited to..
    View notice

  • $550.00 Innovate Grants for Artists + Photographers

    Location: , IL

    FALL 2021 OPEN FOR SUBMISSIONS — Innovate Grant awards (2) $550.00 grants..
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  • Check Jooble for Art related Jobs

    Location: Ottawa, ON

    Looking for a job in the ARTS in Canada? We have thousands of..
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VIEW ADVERTISING

Businesses get a tax deduction for office decor art

By July 18, 2017

How businesses can afford original art in their offices and get a tax deduction.

Business owners can enjoy displaying artwork in your corporate offices, you might be entitled to some tax relief to help subsidize the cost of your art. In a recent technical interpretation letter, Canada Revenue Agency addressed the question of whether taxpayers who purchase or rent works of art, either for their own individual office or for the common areas of their places of business (such as a lobby or hallway), would be permitted to claim a tax deduction for the cost of purchasing or renting the art. Here’s what the CRA has determined:

Buying a work of art

The CRA responded that a taxpayer who acquires a work of art may be able to deduct an amount from the business income provided the artwork was acquired for the purpose of earning income and is not a personal expense. Of course, the CRA goes on to say that the question of whether the artwork was acquired in order to earn income is “a question of fact that can only be determined after a full analysis of all facts related to a given situation.”

If the artwork was acquired in order to earn income, the purchaser must determine whether the amount paid is a current expense or is capital in nature. This can be done by looking at traditional factors such as the purchaser’s intention at the time of acquisition: was it to hold it long term or flip for a quick profit? In most cases, the purchase would likely be considered a capital expense, meaning that the purchaser may be entitled to claim tax depreciation costs when computing business income.

But that’s where the rules get tricky. Under the Tax Act, as long as the art costs at least $200, it can be capitalized and depreciated at a rate of 20 per cent per year for tax purposes, provided it was acquired for the purpose of earning income and that the artist was Canadian at the time the work was done. In other words, artwork that has a cost greater than $200 but is not created by a Canadian artist is specifically excluded as property that can be depreciated for tax purposes. According to the CRA, this is because art objects typically do not depreciate in value, but rather appreciate over the long term.

Rental of artwork

The CRA was also asked about whether the cost of renting artwork for display in the office was deductible. The CRA confirmed that a taxpayer can deduct the cost of renting the art provided the expense was incurred for the purpose of earning income, which, not surprisingly, is also a question of fact.

Rewritten from an article by Jamie Golombek, originally published: March 31, 2016

This article appears in the March edition of the Financial Post Magazine

Visit the iTunes store to download the iPad edition of this month’s issue.

 

Artists in Canada Art Sales Gallery

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Notice Board

SUBMIT View

Current notices

There are no notices at this time.

Today's notices

  • Beacon Original Art

    Location: Calgary, AB

    Applications are open for all painters, sculptors, photographers, ceramic, glass, jewelry and textile..
    View notice

  • Passion to Perform

    Location: Toronto, ON

    Artists are welcome to submit paintings, drawings, sculptures and photography as entries to..
    View notice

  • Toronto Outdoor Art Fair’s 61st Call for Artists

    Location: Toronto, ON

    NOW OPEN: Toronto Outdoor Art Fair’s 61st Call for Artists Join Canada’s longest-running..
    View notice

  • Lobby Gallery Meet The Artists

    Location: Regina, SK

    Meet the artists of the Regina Art Collective and view their exhibit of..
    View notice

  • Darrell Bell Gallery Dispersal Auction

    Location: Regina, SK

    Saskatchewan Network for Art Collecting is hosting an online dispersal auction of artworks..
    View notice

  • 20th “Solo Art Series” – An Opportunity to Shine

    Location: Palm Springs, CA

    Light Space & Time Online Art Gallery announces its 20th “Solo Art Series”..
    View notice

  • Call for Art – 12th Annual “CityScapes” Online Art Competition

    Location: Palm Springs, CA

    Light Space & Time Online Art Gallery announces an art call for the..
    View notice

  • Passages – online art exhibition

    Location: Brooklyn, NY

    Applications are now open for our online exhibition “Passages”. This is a curated..
    View notice

  • 7th Annual Artist's Choice Art Competition

    Location: Palm Springs, CA

    Fusion Art invites submissions for the 7th Annual Artist’s Choice art competition for..
    View notice

  • “People” International Call - Art & Literature Journal - Deadline December 31, 2021

    Location: Toronto, ON

    | Theme: Portraits and other imaginings of people tell such great stories. They..
    View notice

  • Seeking Indigenous Artist

    Location: Burnaby, BC

    My team has a project coming up that requires an indigenous artist. The..
    View notice

  • Positively Petite Miniature Exhibition

    Location: Coquitlam, BC

    Admission: Free November 12 – December 16 Positively Petite is an annual exhibition unique..
    View notice

  • The Art Guild of Scarborough’s Annual Fall Show and Sale 2021

    Location: Toronto, ON

    The Art Guild of Scarborough is very excited to be holding its Annual..
    View notice

  • The Marketer Art Competition 2021 #TMAC2021

    Location: , ON

    The Marketer Art Competition is solely FOR Canadian Artists made BY Canadian Artists..
    View notice

  • Vancouver Photo Lab - High Quality Printing Lab

    Location: Port Coquitlam, BC

    High Quality & Best Canadian Photo Lab in Vancouver to get custom canvas..
    View notice

  • Open Call for Art - 6x6x2022

    Location: Rochester, NY

    Call for Artists! Call for Art-Lovers! Call for Everyone! We want you all to..
    View notice

  • Niagara Pumphouse Arts Centre - ART SALE

    Location: Niagara-on-the-Lake, ON

    Deck the halls this holiday season with unique artwork. You are invited to..
    View notice

  • $550.00 Innovate Grants for Artists + Photographers

    Location: , IL

    FALL 2021 OPEN FOR SUBMISSIONS — Innovate Grant awards (2) $550.00 grants..
    View notice

  • Check Jooble for Art related Jobs

    Location: Ottawa, ON

    Looking for a job in the ARTS in Canada? We have thousands of..
    View notice

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