Depreciating artwork

ctaylor · #1 Apr 13, 2007, 01:51 PM

What makes artwork a non-depreciable asset? Is there some threshold value that the IRS recognizes? Isn't most "art" hanging in most businesses more a depreciable item of decor as opposed to a true investment that will hold its value or appreciated in value? If this is the case and we don't depreciate the asset, aren't assets overstated?

Do most businesses depreciate their non-investment grade art?

delite · Apr 14, 2007, 06:45 AM

Artwork by IRS regulation is not a depreciable asset.

The Texas Tax Expert · Apr 14, 2007, 08:19 AM

Depreciable property needs to have some kind of determinable life to be consistent with section 167 of the law. Artwork does not have that. It does not 'wear out' and thus cannot be depreciated.

Interesting question though.

ctaylor · Apr 14, 2007, 04:27 PM

Quote:

Originally Posted by delite

Artwork by IRS regulation is not a depreciable asset.

Thanks for the answers!

catart · Dec 1, 2007, 07:36 PM

I would suggest that you contact Lark Mason, the CEO of a prominent fine arts auction site, at (212) 289-5588 or Welcome to iGavel for a professional answer to your question.

Dean Allen Phelps



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