art paintings in IP: Depreciable?

Quick q ... would art painting's (belonging to landlord == me) hung on walls in IP be depreciable item? if yes, then qty surveyor's estimate acceptable?
 
Art works are considered to have a 100 year life so yes you can depreciate them, a tiny bit each year. :)

Not all art appreciates, but some does nicely. Went to an auction on Sunday and saw a nice English watercolor I liked. Had an estimate of $800-$1200, sold for $13,400! Wasn't purchased by me by the way. :)
 
cool.

Anyone on the forum depreciated art paintings in IP's successfully (or not)?

Hopefully I'm not the first one thinking of this? Scott?
 
As Leikela says, artwork has an effective life of 100 years, so the depreciation is pretty slow.

But what sort of 'artwork' are we talking about? Are they the prints you typically find in serviced apartments?

If they're under $300 you would write them off. If they're between $300 and $1,000 and you use the Low Value Pool, in they go.

If they're over $1,000, do you really want to leave them in a rental property?

As for valuing stuff over $1,000, if you bought it, the price you paid is the value. QSs are unwilling to value artwork. We recently had a high end job in Perth - corporate rental property. There were some original art works by known Australian painters. The client arranged for an art appraiser to value them (this was necessary from an insurance perspective, too).

Scott
 
Appreciate the detailed response Scott ... clear as water :)

These are actual oil paintings ... but purchased for less than $300 each. In any event, the collective won't exceed $1000 ... hence LVL.

Thanks again
 
particularly an appreciating asset such as art (vs. say a declining asset such as a car)

in fact I can't think of a better asset to buy for a business with a high income. you certainly can't buy land and get a 50% write off!
 
These are actual oil paintings ... but purchased for less than $300 each. In any event, the collective won't exceed $1000 ... hence LVL.
These off Ebay or something? You can get some gorgeous originals by complete unknowns (well, they claim to be renowned) on there for < $500, many a time I have gone drooling but not been able to justify the expense.
 
many a time I have gone drooling but not been able to justify the expense.

I guess each to their own. I love art so wouldn't hesitate to spend $500 on a nice piece of artwork. When I told my friend about a painting I bought recently (beautiful old English watercolor) for $480, she couldn't believe it (as a joke I showed her pieces that sell for nearly a million - modern rubbish and she was lost for words). She said she couldn't justify spending that much on a painting, however this same person spends a fortune in cigarettes (now that I find hard to justify!). People spend a fortune on painting their homes, putting in nice blinds, fancy furniture etc. so what's the difference between that and a nice piece of artwork (which can really make a room)? Like I said, I'm an art lover however so a bit biased. But if you want to justify it, just think it probably took that artist (again unless it's modern rubbish - can you tell I hate that stuff that looks like grafitti? :) ) 20+ hours to do. Add materials and a frame and you easily hit $500+
 
in fact I can't think of a better asset to buy for a business with a high income. you certainly can't buy land and get a 50% write off!

Yes, there aren't alot of guidelines for the Temporary Investment Allowance.

For businesses with a turnover less that $2m, it's 50%.

So it needs to be a company making the purchase. It needs to be a Depreciating Asset. Needs to cost more than $1,000. Needs to be new.

Theoretically, a company could go out an blow $100K on a painting for the foyer. Get $50K back immediately. And then sell the painting next year. Not sure I'd be game to do it.
 
Theoretically, a company could go out an blow $100K on a painting for the foyer. Get $50K back immediately. And then sell the painting next year. Not sure I'd be game to do it.

Just to reword a little from the previous post/example - you get a 50k deduction, not a 50k refund.
 
yes, so $9091 back in GST, $13,636 on tax and then depreciate it as well.

not that great I suppose - but then it is appreciating
 
I guess each to their own. I love art so wouldn't hesitate to spend $500 on a nice piece of artwork.
My house is currently full of ones I've done myself :)

In my old house I had a big blank wall - about 6m x 4m of beige, no windows and no furniture on that wall - and the only stuff for sale that was big enough (I was looking at those abstract sets of 3) to not look stupid on such a big space was around the $1000+ mark, on canvas and unframed so I would have to send them away to get them framed.

Of course now I've moved house and with the new house being almost half the size of the old I haven't really got the wall space to hang a postage stamp so its probably a good thing I didn't get around to buying anything ... I've had to stow all my rugs too for the same reason, they were bought for a much bigger space and look wrong in a small one.

Maybe next house ...
 
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