Tax reduction: purchase of an art photograph

Whether you are an individual or a professional, buying a work of art allows you to benefit from a reduction in your taxes. Here are the conditions to be eligible for tax exemption.

Photography as artwork

For a photograph to be considered a work of art, it must meet several criteria:

  • The photograph must be taken by the artist
  • It must be drawn by the artist or under his control
  • It must be numbered and signed within the limit of 30 copies, all formats and media combined.

Photography in limited edition of less than 30 copies © Clement Lelièvre

Are you eligible for the tax reduction?

For companies:

A company that invests in the purchase of a work of art can deduct its investment from the profit for the financial year of the year of purchase as well as over the following 4 years in equal parts and in an amount equal to the price acquisition within the limit of 0.5% of its turnover excluding tax.

Ex : A company with a turnover of 100,000 € can acquire a work of art of 2,500 € fully deducted from taxes:

100,000 X 0.5% = € 500 tax reduction per year, i.e. € 2,500 over 5 years

In return for the tax reduction, the company is required to exhibit the acquired work (s) to the public for 5 years. The exhibition of the work is accepted as soon as the work is exhibited in a place accessible to the public (accessible to customers or employees of the company with the exception of personal offices)

For individuals:

Individuals are not subject to the exhibition of works of art, so they can do whatever they want with it. However, only individuals subject to the solidarity tax on wealth (ISF) can benefit from an exemption or reduction of solidarity tax on wealth. The individual can therefore deduct the purchase of one or more works of art from the amount of his wealth tax.

Individuals can also pay off a tax debt by selling their works.

To know : for a company as for an individual, it will be necessary to be in possession of an invoice proving the purchase of the work.

Earn money with your purchase

After a while, it may become profitable to resell his works of art. After taking advantage of a tax reduction, you can resell your work. The resale of a work is not taxable if the amount of the price is less than 5000 € beyond, it will be necessary to pay a tax of 5% on the added value.

Total exemption from capital gains, occurs after 22 years of possession, i.e. a reduction of 5% on the capital gain per year

link concerning the legal texts on tax exemption:
https://www.service-public.fr/professionnels-entreprises/vosdroits/F32914

You are interested and want to buy a work of art

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