Rare piece of good news for art from Australian Tax Office – be quick to benefit

ART TAX AUSTRALIA

There is a rare piece of good news from the Australian Tax Office for artists and art buyers down under. A substantial tax break is being offered for purchases of new art before the end of the 2009 tax year.

Australian art scene commentator and advisor Valerie Kabov gives more details in her monthly newsletter:

The ATO has just confirmed that small businesses are eligible to receive an investment allowance of up to 50% on the purchase of artworks for the 2009 income tax year.

NB The allowance only applies to new artworks created by professional artists registered with an ABN.

To qualify for the allowance ATO requires that:

Businesses must be small with a turn over less than 2 million per annum;

Business must demonstrate a dominant business-related purpose for their display.

The works of art must be portable (capable of being moved from one place to another); and in a tangible/visible/displayable form.

Artworks may not be sold within 12 months of purchase.

The artworks must be purchased prior to December 31st 2009

The artworks must cost $1000 or over and be original works by living, professional living artists registered with an ABN.

Artworks bought as trading stock or that were owned by a party other than the artist are not eligible.

Artworks must be bought in the primary market i.e. through the artist, his agent or his dealer.

For more information contact Valerie Kabov at www.renaissanceaic.com.au. Renaissance aic describes itself as an independent educational art investment consultancy with expertise in emerging and contemporary Australian art, collection building and tailored art investment, valuation and procurement services.

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