| February 5, 2015 | 0 Comments
PURCHASES OF ORIGINAL WORKS BY LIVING ARTISTS
Article 238a AB
|(Law n ° 87-571 of July 23, 1987 art. 7 Official Journal of July 24, 1987) (Law n ° 93-1353 of December 30, 1993 art. 42 amending finance for 1993 Official Journal of December 31, 1993) (Law n ° 96-559 of June 24, 1996 art. 6 Official Journal of June 25, 1996) (Law n ° 2002-5 of January 4, 2002 art. 22 I Official Journal of January 5, 2002) (Decree n ° 2002-923 of June 6, 2002 art. 4 Official Journal of June 8, 2002)
Companies which buy, from January 1, 2002, original works of living artists and register them in a fixed asset account may deduct from the result of the acquisition year and the four following years, in equal fractions, a sum equal to the purchase price.
The deduction thus made for each financial year may not exceed the limit mentioned in the first paragraph of 2 of article 238 bis , reduced by the total of the deductions mentioned in article 238 bis AA.
To benefit from the deduction provided for in the first paragraph, the company must display the property it has acquired to the public.
The company must enter in a special reserve account on the liabilities side of the balance sheet an amount equal to the deduction made in application of the first paragraph. This amount is reintegrated into the taxable result in the event of a change in assignment or transfer of the work or a withdrawal from the reserve account.
The company may constitute a provision for depreciation when the depreciation of the work exceeds the amount of the deductions already made under the first to fourth paragraphs.