Tax-Deductions Available on Purchases of Original Art in Canada

The Canada Revenue Agency (CRA) has implemented tax incentives to promote the purchase of original Canadian works of art.

Original artwork purchases are considered a capital expense for corporations or individuals who operate a business. An individual or organization may qualify for an annual tax deduction provided the following criteria are met:

- Created by a Canadian artist
- Over $200 dollars in value
- Displayed in your place of business, in a location where it can be seen by clients (ie. common areas such as a lobby, boardroom or hallway)

Taxpayers can claim a tax deduction for the cost of purchasing or renting the work, and if the buyer is a GST and QST registrant, can recover the taxes paid at the time of purchasing the artwork by claiming input tax credits. For more detailed information please click here