EXEMPT FROM TAXATION
WORK OF ART
To exempt from taxation thanks in works of art
To invest in a work of art
The investment in works of art is doubtless the one what gets most fiscal advantages. (Only valid on French territory)
ART and INVESTMENT
Fiscal measures in favour of the alive artists:
Companies can deduct from their taxable result (see the official text below), the purchases of original works of alive artists.
The obligation of exhibition to the public of these works of art is limited to the duration of the amortization of the good (5 years).
The original works of alive artists are also excluded from the professional tax basis.
See the site of the Ministry of Culture … – official text
For the private individuals:
A work of art is systematically exempted from ISF (wealth tax).
A work sold to a lower price in 5000 Euros is automatically exempted from tax.
Beyond 5000 Euros, the sold object
HOW FISC BENEFIT ART AND COLLECTIONS
> EWB NOT
The works of art are exempt from the origin solidarity tax on wealth. Why continue to pay wealth tax on your stock investments, whose profitability is also now very uncertain, then it would probably be wiser to put this money in old master paintings, sheltered from the taxman ?
For example, if you are taxed in the marginal slice 1% acquisition of a bronze worth € 15,000 will save € 150 a year tax.
> SOLIDARITY TAX ON CAPITAL
Under Article 8551 of the Tax Code, “the antiques, art or collectibles are not included in the tax base for the Solidarity Tax on Wealth”.
The work of art or collection can thus allow the owner to not to cross the fateful 1.3 million that require it to declare all his assets.
The artworks can be assessed only 5% of the assets transferred in a succession.
It only concerns articles for the ornament of the apartments, such as furniture, trinkets, or the paintings; he must there has been no public sale within two years from the death or production of a regular inventory. A master painting or furniture worth several thousand euros can thus in this way be taxed at a much lower value.
Pay taxes in kind. The artworks can be used to pay inheritance tax or wealth tax. This procedure, often overlooked, is called payment in kind. It is simple and, paradoxically, the virtue of being long. You make an offer to the Treasury with the evaluation of properties proposed payment. After an administrative procedure lasting up to three years, the work is presented to the Accreditation Committee dations, what does not agree.
The giving allows you to benefit from a double advantage: set the tax with a work of art and benefit from significant time to meet your tax obligations.
> A changing market.
This once very closed market is experiencing a revolution thanks to the Internet that allows a broad information on works of art, the exhibitions in the galleries. A quality presentation enables discovery of too confidential artists and gives them a real promotion.
This type of investment has an attractive character to the extent that he first appeal to his taste. An acquisition is an almost emotional aspect that will bind for many years the owner to the work of the artist.
It therefore seems very relevant to position themselves now in a sector that should see an interesting development in the coming years.
> A more open market
The art market is undergoing a revolution.
From a relatively opaque and therefore not very accessible market, we go to market more transparent and thus attractive which should see a particularly interesting development in the coming years.
> The creation of a heritage
The acquisition of a work of art must be integrated into the framework of a constitution operation of a real family artistic heritage with a view to long term whose ideal outcome is not selling but transmission .
The desire to own a work of art originates several motivations:
fun first research and aesthetic enjoyment to present a work in its context of professional or family life.
the ability to transmit to his descendants a high quality heritage
the advantage of enjoying tax advantages,
to keep the work for a long time and if possible at least 15 years