Choosing artwork

The value of the artist

An artist who proudly bears his name rarely reproduces what he has done. Although the topics and themes have a tendency to return, they are often topics that interest the artist’s passion, but the emotion generated by each piece is different. The value of the artist is also represented by its rating. We establish the rating according to several criteria: the medium, the career years, demand, prices and distinctions of the artist. We must never forget that this is the first artist that determines its own symbol.

The value of the artwork

The true value of artwork lies in its uniqueness. Also, do not forget that artwork makes our life more pleasant every day by beautifying our environment. Moreover, the art market keeps rising trend year by year.

What type of buyer are you?

The investor buys artwork hoping his investment grow. He choses a young artist, whose future is bright, or a recognized name that will become even more valuable over the years. The collector, buys artwork because he loves it. Art is a passion for him, almost a dedication. Some collectors are also inspired by financial reasons, but it is a minority. The ordinary buyer usually obtains a piece because he likes it, the pice of art inspires him an emotion. The piece will remind him of a souvenir, or it will just decorate his wall for years.

Tax Benefits

Only companies and individuals operating a business can get a tax deduction as capital cost allowance incentive when acquiring artworks. The artwork must be purchased by a person (company or individual operating a business) in a commercial context. The artwork must be exhibited in a place of business where it will be seen by clients. The pieces can then be considered as an eligible capital cost allowance.

Here are the benefits that may be awarded:

  • Declining deduction of 33.3% in Quebec.
  • Declining deduction of 20% at federal level.

If an individual or a company makes a donation to a Quebec museum:

  • A tax receipt will be issued in the amount of the fair market value of the work, the donation amount is increased by 25% in the tax credit calculation for individuals and in the deduction calculation for corporations.
  • It is then possible to be exempt from taxes on capital gain if the work is officially recognized as a “national cultural” property.

Source – From LA PRESSE – Affaires, The art market in Quebec, page 3, Saturday, Aug. 23, 2008.