Unlocking Tax Benefits through Art Investments in 2024 with Studio Gallery

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Wondering if claiming tax deductions on your art acquisitions is within reach? As the tax season edges closer, it's time to explore innovative strategies to maximise your financial assets. Look no further than Studio Gallery for expert insights tailored to your needs. 



Eligibility for Art Tax Deductions:

Ever wondered who qualifies for art tax deductions? Thankfully, the Australian Taxation Office acknowledges artwork as both an investment and a depreciating asset, opening doors for potential deductions. Whether you're acquiring art for personal enjoyment or enhancing your business, there may be tax benefits in store for you.

For individuals working from home offices, deductions for artwork expenses, up to $300, can be claimed as part of home office expenditure. Amounts exceeding $300 must follow standard decline in value rules. Meanwhile, small to medium-sized business owners, with turnovers under $500 million annually, can capitalise on more substantial deductions. The ATO classifies artwork purchases as eligible for the instant asset write-off measure, regardless of the office setup.

Claimable Amount:

Ordinarily, artwork depreciation rates are minimal, with a useful life assessed at 100 years, equating to an annual depreciation rate of around 1%. However, the instant asset write-off measure significantly raises the threshold. Since 2020, business owners can claim up to $150,000 per painting or sculpture, with no limit on the number of eligible pieces. This makes investing in art for your office a compelling proposition.

Criteria for Eligible Artwork:

To qualify for tax deduction under the instant asset write-off, artwork must meet specific criteria:

  • Tangibility
  • Ability to be moved
  • Purchased with the primary intent of display in a business premise
  • Exclusion from the classification of trading stock

It's important to note that NFTs (non-fungible tokens) do not meet these criteria for claiming art tax deductions.

Art Transfers from Super Funds:

Transfers of artworks from super funds to members can also yield tax deductions for eligible businesses. A market valuation is crucial in this scenario, with the ATO providing specific valuation instructions for accurate assessment.

Choosing the Right Artwork:

Selecting the right artwork for your workplace is paramount, especially with the potential for significant tax deductions. Art not only reflects your organisation's values but also fosters connections with stakeholders. Studio Gallery works with a dynamic and relevant collective of artists from emerging through to advanced career stages. Browse our stable of talent through the ARTISTS page.

Studio Gallery offers assistance in selecting artworks tailored to your workplace, as well as trade and benefits for industry professionals, browse our entire stockroom online and filter through genre, price, size, medium via our ARTWORK FILTER

Leveraging tax deductions on artwork acquisitions presents a promising opportunity for businesses. Studio Gallery is here to guide you through the process, why not try our ART IN-SITU TOOL. Our talented team of art consultants will provide you with mockup's and curatorial suggestions for your space.

Studio Gallery offers four locations across Australia. A gallery in the heart of Armadale VIC, a large converted warehouse in Cheltenham VIC, opulent ground floor space in Waterloo NSW, and an expansive double floor gallery in Brisbane within the hum of the James Street precinct.




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