INSTANT ASSET WRITE-OFF

Running a business from home? Buy art for your home office and take advantage of the government’s immediate tax write-off rules*.

INSTANT ASSET WRITE-OFF

The instant asset write-off is currently available to businesses with turnover of less than $500 million.

 

IS ART INCLUDED?

Yes. Artworks are held to be depreciating assets by the ATO, which means that they qualify for the instant asset write-off measure.

During this financial year it is possible to claim a complete deduction of up to $150,000 for each artwork purchased by a small- or medium-sized business for their premises, subject to four criteria. The artwork must be:

– Tangible.
– Capable of being moved.
– Purchased predominantly for display in a business premise; and not be trading stock.

Please discuss with your accountant first to determine eligibility/suitability. In most cases, if your home is regarded as a “business premise” for tax purposes, then you can buy art and claim the instant write off deduction. In practice, what this means is that the art becomes an expense in the month that it is incurred and can be set off income for the month. In effect, it means that the money used to buy the art is not taxed.

For more information click here.

 

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