1st time art exhibit

Forum|Forum|1 year ago
November 13, 2024
1 reply
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I had an art exhibit at a local church gallery. They had a commission rate of 20%.

Do I report 100% of art sales to IRS and list the commission as a business expense?

Does the exhibit taking place in a church have any special twist on how I file my taxes?

Thank you for your help.

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Bsch4477

Employee

Depends on how your income is reported to you. If the entire amount is attributed to you by a tax document or your bank account then deduct the commission as an expense on Sch C. If your income reflects the commission just report the net income.

Opus 17

Employee

@Bsch4477 wrote:

Depends on how your income is reported to you. If the entire amount is attributed to you by a tax document or your bank account then deduct the commission as an expense on Sch C. If your income reflects the commission just report the net income.

Both are acceptable.

There is nothing special you can claim because the gallery is also a church. Nothing counts as a donation. And if you did donate a painting, you can only take a deduction for the costs of materials, unless you report the donation as a sale with taxable income.

(The church might have Unrelated Taxable Business income -- UBTI -- and they could be in serious trouble if they gave receipts indicating that any part of the purchase was tax deductible to the buyer -- but that is their problem, not yours.)