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| If you are considering financing options for your artwork purchases, be sure to consider a leasing program. Financing your artwork is the most tax effective way to acquire your portfolio. As works come on the market you simply pay a low monthly payment. Finance is available to organisations where the goods are for business purposes and is as easy as purchasing - with many significant financial advantages: 100% Financing There is no need to waste time searching for other financial resources. Leasing eliminates the cashflow constraints with 100% financing. Conserves working capital When you finance your company's artwork your company's cash is not tied up. You have more control over your money. Preserves credit line Financing your artwork preserves those bank lines and other credit facilities for other company needs. Fights inflation Financing your artwork is a wonderful way to fight inflation. How? By leasing, your costs remain the same over the life of the agreement no matter how much prices increase. In essence, you are paying for today's asset with tomorrow's dollar. Various terms are available to meet your leasing needs. Once the total number of monthly instalments has been made a predetermined final instalment (Residual) is due. Once this is paid the goods are yours. Artworks depreciate at a very low 1% per annum. Whether you buy outright or whether you finance artwork on a Commercial Hire Purchase (you claim interest and depreciation) then the tax deductions you will receive will be ALMOST NOTHING. You would have to live for 100 years to write-off your artwork. Under a finance lease the underwriter/bank owns the artwork and you merely lease the artwork from them. You can claim lease payments and at the end of the lease you can buy the artwork for the residual value. Finance leases for artworks with a fair residual value can be arranged via specially set up banking funds. Listed below is an example of the repayments due under a finance lease for artworks. Competitive finance rates with minimum paperwork and simple contracts. Example costing
So you could have a $20,000 artwork on a tax effective lease and only pay around $100 per week. * These figures are indicative and are subject to Credit Approval. The above figures are inclusive of duties. Please always obtain independent tax advice from your accountant or tax agent. As an accredited CBFC Referral Partner, Cooks Hill Galleries can arrange for a representative of CBFC to promptly contact you for the financing your Artwork needs - subject to Credit approval. If you are interested in more information about leasing artwork, please contact us. to Art Advisor |
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