8 October 2010 Roundtable, 2010-0373311C6 F - Oeuvres d'artistes étrangers -- summary under Paragraph 1102(1)(e)

A public corporation acquires such works of art from foreign artists, for example, paintings that are used to decorate the boardroom in a director's office, where clients are not received). Are the works capital property that cannot be depreciated? After noting that the works would not be listed personal property, CRA stated:

In general, a painting by a foreign artist that has a cost to the corporation of not less than $200 and is not listed personal property would then be considered to be capital property that is not depreciable because of ITR paragraph 1102(1)(e).

… Our response would remain the same in the case of a painting located in the office of a director who does not receive clients in that office … .

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