We have listed the 10 most important questions to ask a wealth management advisor for advice on buying works of art tax-exempt, rental with option to buy, leasing or multiple payment.
Different tax exemption measures exist in France for the purchase of works of art, such as the donation in payment, corporate sponsorship, private sponsorship, the Historic Monuments regime and the deferral of taxation, but they are subject to specific conditions.
The tax deferral system in France allows taxpayers subject to the IFI to buy a work of art and defer the taxation of its value as long as it is kept in their assets, for a fixed period, but taxation will be due if the work is sold before the end of the period.
During the purchase and conservation of a work of art in a property classified or registered as a Historic Monument in France, the expenses related to the acquisition, restoration, maintenance and conservation of the work can be deducted from taxable income, under certain conditions and with a conservation commitment.
Private patronage in France offers a tax reduction of 66% of the amount of the donation of an eligible work of art, within the limit of 20% of taxable income, with a five-year conservation commitment and the need to a donation certificate issued by the beneficiary organization.
Corporate sponsorship in France offers tax advantages to companies supporting cultural activities, including the purchase of works of art, with a tax deduction of 60% of the amount of donations or acquisitions, capped at 0.5% turnover, and the obligations of conservation and public access.
The dation in payment in France makes it possible to pay a tax by offering the State a work of art or a cultural asset of heritage interest, thus reducing the amount of tax to be paid and preserving the artistic and cultural heritage in l integrating into public collections.
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