Purchases and Certificates of Authenticity
With each painting comes a certificate of authenticity describing the work's title, dimensions, year of creation, and bearing the artist's signature and seal. Such a certificate is highly valued in the art field and will enable the purchaser to authenticate his purchase.
Did you know that as an an entrepreneur or self-employed worker, you are entitled to certain tax advantages when you purchase a work of art? Such advantages, when applicable, include tax credits and capital cost allowances when you purchase Canadian works of art.
It is possible to claim a capital cost allowance for the total purchase price of a work of art. In order to do so, two conditions must be met: (1) the purchase must be made for a commercial purpose, notably so that the work is exposed and can be seen or admired by clients; and (2) the work must be that of a Canadian artist. When these two conditions are met, an annual capital cost allowance of 20% at the federal level and of 33.3% at the Quebec level can be claimed annually.
Do not hesitate to contact your tax specialist for further information. We also take the liberty of referring you to the following article L’acquisition d’œuvres d’art : la fiscalité au service de la culture.