Purchasing a work of art can have several benefits, depending on your situation and goals. Here are some examples :
- You can benefit from a tax advantage if you purchase a work of Canadian art and display it to your customers as part of your business¹². You can claim an annual depreciation deduction corresponding to 20% of the amount paid federally, and 33.3% in Quebec¹.
- You can diversify your assets and benefit from an exemption from wealth tax, because the price of the work is not taken into account in the calculation of the ISF base⁵. You can also realize a capital gain if you resell the work for a higher price than you paid².
- You can support local artists and contribute to the influence of Canadian culture. You can also enrich your work environment or your personal residence with works that you like and that reflect your personality³.
- You can learn more about history, society and artistic movements through the works you purchase. You can also develop your critical sense and your aesthetic taste by comparing different works and exchanging with artists or gallery owners⁴.
Purchasing a work of art is therefore a decision that can bring you satisfaction, pleasure and profit. However, you must also be aware of the risks and constraints linked to this type of investment, such as the fluctuation of the art market, the conservation and insurance of works, or even specific tax rules. It is therefore recommended to obtain information from qualified professionals before embarking on the purchase of a work of art. 🎨
(1) Taxation of works of art: everything you need to know.
https://www.rcgt.com/fr/nos-conseils/la-fiscalite-des-oeuvres-dart/.
(2) The purchase of works of art provides a tax advantage.
https://www.lesaffaires.com/dossier/comment-invest-dans-l-art/l-achat-d-oeuvres-d-art-procure-un-advantage-fiscal/577952.
(3) Decryption: why do works of art sell so expensively?
https://www.notretemps.com/loisirs/musees/decryptage-pourquoi-les-oeuvres-dart-se-vendent-elles-aussi-cher-15703.
(4) How does the purchase of a work of art take place - Neuvieme Art. https://www.neuvieme-art.com/achat-oeuvre-d-art/.
(5) Tax exemption and works of art | Defisc-impot.fr: The guide to .... https://www.defisc-impot.fr/conseils-defiscalisation/defiscalisation-oeuvre-art/.