Art is meant to be experienced. Irrespective of whether those
experiences take place in public or in private, art in any of its
forms has the power to create lasting impressions.
The tax treatment of art as it changes hands can also leave an
impression, being subject to capital gains and potentially
involving large tax liabilities. However, donating art can give one
access to credits that could significantly decrease their taxes
owing.
There are two pathways one can take when donating art: donation
to a public organization or donation to a museum.
Donating to Public Organizations
Donations to public organizations are still subject to a capital
gains tax, if the piece is determined to hold a fair market value
of more than $1,000, and the CRA will require that any art donated
with the aim of receiving a tax credit be appraised. However,
donation also gives the donor access to a tax credit that can be
used to offset up to 75% percent of income in a year, a
