Under the small business tax allowance buying art to be displayed in your business can be a 100% tax deduction immediately claimed at the end of this financial year.
If you have a small business this a great time to improve your work environment with art.
The Prime Minister's budget stimulus announcement this week included an increase in the threshold of the Instant Asset Write Off Scheme from $30,000 to $150,000.
Up to $150,000 can be claimed for purchases of artworks for your office, if purchased before the end of this financial year.
The ATO classifies artworks owned by businesses as both investments and depreciating assets. As their useful life is determined as 100 years they are subject to a very low rate of depreciation - usually around 1% per year. Ie under normal circumstances you could only claim 1% of the cost of an artwork as a tax deduction.
As artworks qualify under the Instant Asset Write-off Scheme it is now possible to claim a complete deduction of up to $150,000 for artworks purchased by a small to medium-sized business for their premises, subject to four criteria.
The artwork must be:
• Tangible
• Capable of being moved
• Purchased principally for display in a business premise; and
• Not be trading stock.
Under the Budget Stimulus Package announced by the Prime Minister at the onset of the Covid -19 epidemic, there is no limit to the number of artworks costing less than $150,000 for which an small to medium-sized business (with an annual turnover of less than $500 million) may claim a tax deduction.
Mitchell Fine Art are available to provide advice and assistance for the purchase of artworks for your office boardroom, reception area and employee work spaces.
With an extensive inventory of high-quality artworks and the business' long term expertise in the art world our team is dedicated to providing a quality experience.
We can provide onsite advice for your specific space needs and also assist with framing, transportation and hanging requirements.
To discuss this further, please contact Mitchell Fine Art on (07) 3254 2297 or email admin@mitchellfineartgallery.com
