TAX DEDUCTIONS FOR BUYING CANADIAN ART!

First off, I need to make it very clear, I am NOT qualified to give financial advice of any kind, so talk to your accountant, however the qualifying criteria looks pretty straightforward:

The art must be:

• created by a Canadian artist

• Be over $200 dollars in value

• Exhibited in your place of business that can be seen by clients and intended to earn income. (CRA business expenses clarifications).

If the criteria is met, as I understand it, buying artwork is considered as an amortization expense for corporations or individuals who operate business. The cost can deducted over a period of several years as capital cost allowance (“CCA”).

Plus, if you are GST registered, you can also recover the taxes paid at the time of purchasing the artwork by claiming input tax credits. How fabulous is that?

So now you all you need to do is buy my art!

Fiona

*Disclaimer: Please verify your own circumstances with the CRA. This article is not intended to be tax advice.