As we approach the end of another financial year, it’s important for small business owners to understand exactly what can and can’t be claimed as a tax deduction for your business.
Did you know that you can claim an immediate 100% tax deduction for your small business on all artwork purchases under $20,000?
Thanks to some changes to the rules around tax deductions, the ATO allows small businesses to claim an immediate 100% tax deduction at the end of each financial year on any artworks purchased for display within your business. You may decide to hang the artworks in your reception, in a boardroom, within a staff breakout area, or indeed anywhere where they will improve your working environment.
This generous deduction falls under the ATO’s simplified depreciation rules, allowing small businesses to claim a 100% deduction rather than adhering to a regular depreciation schedule. At this stage these special rules are due to end on 30th June 2019, so this means you only have a few months left to make your qualifying purchase of some fantastic art! You are free to purchase and claim as many artworks as you wish, just as long as each individual artwork has been hung within your business before 30th June 2019 and each piece does not exceed $20,000.
Be sure to seek your own financial and tax advice to ensure your small business is able to claim this immediate 100% tax deduction.
And for any queries around which artworks you should purchase to enhance your space, make sure you come to see the team at KAB Gallery!