Need your office space a facelift? Why not lease some new artwork.
Leasing artwork can be the perfect solution to the décor decisions you have to make in your office or home space.
Lease Rental is 100% Tax Deductible
The main reason that the majority of companies lease rather than purchase art is that they use leasing as a method of reducing their tax bills. This is because lease rental is 100% tax deductible, meaning that all payments you make for your artwork are written off against your tax bill. For any profit-making business, this means a substantial saving in the real cost of acquiring art by lease rental. This could save you 20% on your lease payments, based on UK corporation tax rates.
Leasing is often referred to as ‘off balance sheet’ financing – a tremendous advantage to both large and small businesses.
The main reason that the majority of companies lease rather than purchase art is that they use leasing as a method of reducing their tax bills. This is because lease rental is 100% tax deductible, meaning that all payments you make for your artwork are written off against your tax bill.
When you sign up for a leasing contract you can pay upfront for the full leasing period or choose a monthly payment plan. A nonrefundable security deposit equal to three months’ payment plus initial production cost, is needed when signing up for a monthly leasing contract. There is a minimum volume requirement of 3 artwork for leasing.
How it works (Example)
Choose your favourite artwork and click “Lease Request”. Remember that you have to select a minimum of 3 artwork. When you have selected all the artwork you like to lease just fill out the form and send it. I will come back to you with a leasing plan within 24h.
You have two ways of paying when leasing: Up Front (*) or on a monthly basis. The example is based on a 6 months leasing plan for 10 medium sized pigment prints (list price $590.00/each):
- Upfront payment for 6 months leasing of 10 medium sized artwork is $350.00/each – Total Cost: $3500.00 + Shipping
- Monthly payment for each: Initial cost (**) of $250.00 + $45.00/month in 3 months. Total Cost: $3850.00 + Shipping.
In the example over you will save $350.00 if the whole leasing period is paid upfront. The Buyout price after the end of the leasing period, if you like to keep the artwork, is $264.00/each. You can keep all, a few or none.
(**) All initial cost for monthly leasing includes the first 3 months.
(*) Up Front means that you pay the whole leasing cost when ordering, giving you a small discount.
At the end of your lease
During the lease period (6 or 12 months), you are renting the art and for that reason, you are gaining your 100% tax relief. At the end of the period, therefore, the art is not your property, which means you should return it to Erik Brede Photography, however, in practice no one does this. Erik Brede Photography will offer you the art for the buyout price specified in the contract, which of course is still 100% tax deductible. If you choose to buy out the artwork, the CoA document, a signed label and the security tamper will be mailed to you – read more about CoA here.
The total cost of leasing + buyout is approx. 10% higher than the list price.
If you don’t like to keep the artwork after the end of the period you can return it to Erik Brede Photography. All shipping cost and taxes have to be paid by sender.
Leasing Terms | Art Leasing FAQ
Leasing Cost Example - 6 months
Real and Unique Pigment Ink Giclée Print on Hahnemühle Fine Art Baryta Paper, Unframed Limited Edition.
Direct UV-Print on Brushed Aluminium
High Quality, Extra-Long Durability, Ready to hang.
Deluxe Chromogenic Print on Crystal Clear Acrylic Glass with aluminium dibond backing, Ready to hang.