IMPORTANT ANNOUNCEMENT!
ATTENTION SMALL BUSINESS OWNERS.
ATO CONFIRMS INVESTMENT ALLOWANCE FOR ARTWORKS.
AN INCREDIBLE INCENTIVE EXISTS FOR SMALL BUSINESS ART COLLECTORS.
The Australian Tax Office has 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.
Eligibility is subject to a number of conditions being met. The most important are:
1. Artworks must be $1000 or more.
2. The purchaser must have an ABN and have turnover of less than $2m.
3. Artworks must be “predominantly” used for business. According to the ATO this means use of more than 50% of the time/use
4. Artworks must be the work of a living artist registered with an ABN
5. Artworks must be recently created and bought directly from the artist or their gallery
6. Artworks must not be adding to the purchasers trading stock.
7. Artworks would have to have been purchased after 13th December 2008 up to 31st December 2009.
This is an excellent incentive if you are contemplating an art purchase and comply with the above requirements.
Disclaimer: This information represents a broad discussion of the issues involved. It does not represent financial advice. Any decisions made should be the result of due diligence or advise from a qualified professional.
