From complex tax structures to cross-border matters, Jasmin Elsener has long navigated the intersection of law, business, and practice with confidence. As Head of Tax, Certified Tax Expert, and Partner at swisspartners, she combines profound expertise with a keen eye for tailored solutions.
Her focus lies on holistic tax advisory services that extend beyond traditional topics. With her knowledge, she brings together legal precision and practical implementation, advising clients on specialized issues such as the tax treatment of art and watch collections. Her guiding principle: making complex matters accessible, identifying opportunities, and creating sustainable solutions.
Household goods and personal belongings are tax-exempt and therefore do not need to be reported in the tax return. Art and watch collections, however, must be declared as taxable assets. The key question is whether the items qualify as tax-exempt household goods or as taxable assets acquired for investment purposes. Since wealth taxation is governed at the cantonal level, practices may vary between cantonal tax authorities.
Assets primarily serving residential purposes or personal use are generally considered tax-exempt household goods. Indicators may include whether artworks are displayed in living spaces or whether watches and jewelry are worn regularly.
In addition to actual use, the original purpose of acquisition plays a role. Items purchased as investments always qualify as taxable assets. However, the taxpayer’s overall financial situation must also be considered. For individuals with significant wealth and a higher standard of living, valuable artworks may reasonably be viewed as part of ordinary home furnishings. A separate insurance policy for artworks, however, may indicate that they are taxable assets.
While some cantons apply practical thresholds, the Canton of Zurich does not follow a fixed value-based approach. In a 2012 ruling, the Zurich Administrative Court held that a painting worth CHF 150’000 constituted a taxable asset. The Zurich tax authority often refers to this benchmark, although in practice such a flat threshold rarely reflects the circumstances of the individual case.
A symbolic declaration of artworks or watches at CHF 1 pro memoria in the tax return is usually insufficient. To avoid potential reassessment procedures, it is advisable to submit an itemized list of artworks and watches with the tax return, including purchase prices (or insurance values, if available). By disclosing this information, the tax authority is deemed to be aware of it and may request further details if necessary. Ultimately, the classification as tax-exempt household goods or taxable assets always depends on the specific circumstances of each case. We are happy to assist you in determining the most appropriate way to proceed with your tax declaration.
