Among the financial solutions enabling small and medium-sized businesses to acquire works of art, leasing is a relevant choice because of tax advantages.
The leasing of works of art:
vesting through the exercise of the option
Steeve Monterin supports you in the art rental process with a tailor-made leasing offer. The financing solutions proposed under the control of your accountant, guarantee the best application of the exceptional tax system designed to promote art in France:
> Lease payments are 100% tax deductible operating expenses up to a limit of 5% of turnover.
> Rental financing is a deductible expense, it reduces the result or taxable income of your activity as much.
> The rental period is between 13 and 60 months with the possibility of a first rent increase.
The transfer of ownership:
the benefits of acquiring works of art
At the end of the leasing contract, the owner of the work of art may assign it to any third party, natural or legal person. At the time of a sale, the private individual who gives up an object of art, antiquity or collection is subjected to a specific taxation:
> Article 885I of the General Tax Code (CGI) provides that works of art are fully exempt from wealth tax.
> Flat-rate taxation, which taxes the taxpayer up to 6.5% of the selling price of the property.
> The general scheme, which imposes capital gains tax of 34.5% (19% + 15.5% of social security contributions). The taxable capital gain is calculated on the basis of the gross capital gain from which a 5% allowance is deducted from the third year onwards.
After 22 years of ownership, works of art are fully exempt from capital gains tax. In the event of transmission, works of art benefit from particularly advantageous inheritance fees with a fixed flat rate of 5% of the estimated value of the work.
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