The Tax Benefits of Buying Original Canadian Art
The Canadian Government allows Original Canadian Art to be depreciated thorough the Capital Cost Allowance for business as an enticement for Canadian business people to support Canadian Art and Canadian Artists.
Canadian businesses can claim tax depreciation (CCA – capital cost allowance) on Canadian art purchases as a class 8 asset at a declining balance rate of 20% with 10% in the year of purchase, as long as the Artist was a Canadian Citizen when creating the work and the work of art is an Original worth a minimum of $200.
Please consult your accountant for further information.