Artwork with tax benefits
Artwork with tax benefits
accounts. This is because the value of a work of art usually does not diminish.
What types of art
The special rules only apply to original works of visual art. This means paintings, sculptures, graphics, photographic art, installation art and the like. A distinction is made between works of art that are hung or displayed and works of art that are part of a building.
In the case of graphic and photographic works, it is a separate requirement that they are numbered and signed by the artist and only produced in a limited edition. Reproductions are not covered by the rules.
The artwork must be a first-time purchase and must be purchased directly from the artist or from a gallery that has the artwork on commission.
The rules do not apply if the business purchases the artwork from an artist who is related or otherwise closely connected to the business owner.
Read more in our one-pager, available here.