100% Tax Deduction for businesses

100% Tax Deduction for businesses

Did you know that buying art to be displayed in your business can be a 100% tax deduction immediately claimed at the end of this financial year.

As part of the Instant Asset Write Off Scheme, 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. 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.

If you have a small business, NOW is a great time to improve your work space with art.👌😀💚

*see ATO to confirm
June 11, 2021 — Orenda Joy Green