Art as a Business Asset
As businesses in Kelowna and across Canada plan their year-end strategies, supporting local Canadian artists can do double duty: enriching your workspace and unlocking meaningful tax benefits.
Here’s a short guide to how original Canadian art can be part of a smart, locally-minded tax plan.
How it works for businesses:
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Eligible purchases: Original artwork by a Canadian citizen or permanent resident (including paintings, sculptures, drawings, photographs, and other media). The work must be original and created by a Canadian artist.
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Tax treatment: If the artwork is under $200, you can claim a 100% deduction in the year of purchase (Class 12). If the artwork is $200 or more, you can claim 100% upfront as a Class 8 capital cost allowance (CCA) depreciable at 20% per year.
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Example in practice: A $10,000 original painting could yield a 20% deduction in Year 1 ($2,000) and continue to yield 20% of the remaining balance in subsequent years (e.g., $1,600 in Year 2, and so on), until the asset is fully depreciated. This structure helps businesses spread the value of the asset over time.
Why support Kelowna and Canadian artists
Purchasing work from local artists supports the local economy, studio livelihoods, and the cultural fabric of Kelowna. In addition, local art adds character to offices, reception areas, and meeting rooms, creating a distinctive environment that reflects your community. Featuring local artists can enhance your brand narrative, inviting clients and partners to connect with the region’s creative energy.
Learn More About Kelowna Artists
Support the local economy and the careers of artists who call Kelowna home. Kelowna Art Book features a diverse range of local artists, including emerging talents and established names. More information can be found here.
Important note
Tax rules can be nuanced and depend on your specific circumstances. Eligibility can vary, and outcomes may differ based on the artist, the nature of the artwork, and how the asset is used in your business. Please consult a Chartered Professional Accountant or tax advisor to confirm how these rules apply to your situation.