We’ve all got that one friend who is a terrible influence to take shopping because they’ll convince you in one way or another that you need that new jumper, those shoes, that throw rug. Well, today I’m here to be your ‘bad influence’ shopping bestie, that little devil on your shoulder saying ‘do it…’. Although, I might argue that in this case I’m your art buying angel.
Searching for a legitimate excuse to buy that art? I’ve got you covered. Did you know that you can claim the purchase of your new artwork as a tax deduction? Some businesses may be eligible for an instant asset write off of artworks up to $150,000! That’s a lot of art. You’re welcome.
Who can claim art as a tax deduction?
The good news is that regardless of why you bought the artwork, the ATO (Australian Taxation Office) views art as both an investment and a depreciating asset. That means you can claim it as a deduction. The size of your business and whether you are an owner or employee will determine the amount you can claim.
How much can I claim?
Because artwork is classified as a depreciating asset, it qualifies for the instant asset write-off measure. The threshold for this was raised in 2020 from $30,000 to $150,000 per artwork PLUS there’s no limit to how many pieces you can claim! To be eligible, it just needs to be capable of being moved and purchased with the dominant purpose of display in a business premise (anyone else’s home office looking a bit bare?!).
What sort of art should I buy?
If you haven’t already had some art in mind since you first started reading this post, let’s decide what art you might like to be searching for. Art is the perfect way to represent your organisation‘s values and vision. Consider commissioning a custom artwork to suit your space and purpose.
Art is entirely subjective, so think about how the artwork will make others feel. Do you want to stimulate conversation in a common area with an abstract work? Create an impact for entering clients with a statement piece or ease nerves in a waiting room? Maybe you’d like to connect with your location or bring a piece of home to the office with a landscape. Art has the ability to uplift and inspire in any space.
With all that said, end of financial year is fast approaching so you’ll need to make your purchases or book your commission by June 30th to be eligible to claim this year. Nothing like a deadline to get you excited!
Need some help deciding? Send me a message. I’d be happy to help you consider the best fit for your space.
Comments