Saturday, November 20, 2010

CFO Guide to Art Rentals and Art Leases

You need artwork for your lobby, building, or conference room, but don't have thousands of dollars to spend.  What's your option?  To lease or rent.

The factors to consider:
Rental vs. Lease, short term vs. long term, use vs. ownership.  All good questions when considering whether to rent or lease artwork...with one exception:  Tax Deductibility.

Artwork is NOT considered a depreciable asset by the IRS, so a company that purchases artwork or leases with a purchase option CANNOT expense or depreciate the art.  See The CPA Journal on Federal Taxation for Revenue Ruling 68-232:  "a valuable and treasured art piece does not have a determinable useful life. The ruling also distinguishes between the condition of the artwork and its life. While the actual physical condition of the artwork may influence the market value placed on it, its condition will not ordinarily limit or determine the artifact's useful life. Accordingly, works of art may not be depreciated."

The solution:
An art rental CAN be expensed if structured properly.  Renting art solves two problems:  one, you need artwork and two, you have limited capital.

Why rent from Art Rent and Lease?
1. Art you rent is tax-deductible as a business expense;
2. Low up-front costs: typically just the first and last rental payment in advance plus any installation or design costs;
3. No one will know it's rented but you and your accountant;
4. Rentals allow you to rotate your artwork every so often if desired;
5. Simple rental agreement with terms from 1 week to 24 months or more;
6. No fixed purchase requirement at the end of the rental.  Your options are to continue renting on a month-to-month basis, return the artwork, or negotiate a separate purchase;
7.We make it easy by providing solutions that include help with budgeting, artwork selection, framing, installation and collection management;
8. If you need it fast, we can deliver and install anywhere in the US within days (photo shoots, movie sets, special events);
9. We're a woman-owned business established in December 2000 and have placed artwork across the US to virtually every type of industry;
10. We have thousands of original paintings and sculpture to choose from, much is eco-friendly and sustainable;

For more information on a True Art Rental, call Lisa Powell at (888) 440-9260 x710 or visit our website: http://www.artrentandlease.com/

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