How it works:
The IRS has successfully taken the position that “fine art” is more like an investment–such as purchasing Apple stock—-and as such is not depreciable by a business owner who displays the art in their place of business. The business owner could only “write-off” the fine art cost should they ever sell it—just like purchasing/selling stock.

If the business owner takes the position that leasing fine art is an “ordinary and necessary” business expense, then the lease payments are tax-deductible. Generally the art should be displayed in a business which is consistent with the art, or that it improves/promotes the business “brand”, such as fine art in an upscale law firm or architecture firm who frequently has affluent client meetings.  In this case, the fine art lease payments can be tax-deductible if they benefit the business and help to promote a “brand”.

Lease-to-buy is also an option. The option amount is fair market value at the end of the lease and not “a dollar and other valuable consideration”.  If the buyout option is extremely low, the IRS will successfully take the position that the entire transaction is an installment sale.  Essentially they will see this as a purchase at the outset, and the business will not be able to write-off the lease payments. So our lease with an option to buy includes reasonable buy-out values.

Benefits of leasing include:
- Tax Deductible
- Lower Cash Outlay
- Rotate Work Every Quarter
- Select from Hundreds of Works
- Have a Work Made for Especially You

To see a copy of our Fine Art Leasing ™ lease terms as well as available inventory, please contact:

Jason C. Zickler
317-698-1309
www.JasonZickler.com
jason@zickler.com