TAX EXEMPTION You wish to acquire one or more works of art by Marie-Joëlle Cédat, animal sculptor, you can benefit from the tax system set up to support the work of artists, whether you are a business owner, a liberal profession or an individual! The acquisition of a work of art gives the right to tax exemption according to Article 98A of the General Tax Code if you are subject to the IFI (Real Estate Wealth Tax). However, the original works must be by a living artist (published in 8 copies) to benefit from this tax deduction and have the purchase invoice and a certificate of authenticity proving that it is an original work. The acquisition of a work by Marie-Joëlle Cédat is accompanied by an invoice and NVESTIR IN ART AS AN INDIVIDUAL If you pay the IFI, the acquisition of works of art will be financially beneficial to you, they are totally exempt from taxes and therefore do not have to be mentioned on your IFI return. The capital gains tax on the transfer, by sale, or by inheritance can be reduced. Indeed, works of art can be valued at only 5% of the patrimony transmitted during an inheritance. Last but not least, works of art can be used to pay inheritance tax. Called payment dating, this procedure allows you to pay tax with a work of art and have a deadline to meet your tax obligations. This period is due, in particular, to the fact that this administrative procedure may last up to three years.
According to Law No. 2003-709 of 1 August 2003, companies or liberal professions that purchase original works of art from living artists may deduct this expense from their Industrial and Commercial Profits (BIC). The companies concerned are: Those subject to corporation tax Those subject to income tax in the category of BIC, Non-Commercial Profits (BNC) or Agricultural Profits (BA). The amount of the works acquired will be recorded in the fixed assets account in order to benefit from the tax reduction in equal fractions over five years. A company that keeps a work of art for five years will be offered a tax deduction of around 20%. However, the reduction can never exceed 5% of the company’s annual turnover.
- To benefit from a tax exemption for works of art, certain criteria must nevertheless be respected: Have an invoice The artist must be alive at the time of purchase of the work. Exhibit the artwork to the public for at least five years after its acquisition. It cannot be placed in a private office or in a place reserved for the company’s customers only. The exhibition is not mandatory for individuals. Enter the works on the company’s balance sheet, deductible from the balance sheet