Depreciation rules for art purchases

Depreciation rules for art purchases

 
The following requirements must be met in order for companies to deduct their art purchases:
 
         1.  It must be a first-time purchase of the artist's works. So only works of art that have not been traded before
              and which are purchased from a gallery or from the artist himself.
            
              An artwork (painting) that has been sold previously or purchased through an auction company can not be deducted.
 
         2.  The artwork must be purchased for use in commercial premises only and used exclusively for commercial
              purposes. So no mixing of business and private homes.
 
              Artworks below:    DKKR. 11.900,-     Deducted all at once
              Artworks above:    DKKR. 11.900,-     Depreciated with 25 % of the balance value annually
                      
         If the artwork is fixed to a wall the depreciation rules for building depreciation apply, which can be depreciated with 4% annually.