Guest JBaymore Posted August 26, 2014 Report Share Posted August 26, 2014 Empty Bowls sometimes. Generally if I am going to donate... I give cash. Mark.... have you ever been audited by the IRS? Everything I have ever seen or heard on this subject says that as the artist making the work, you can only take the normal cost of materials (no self labor) that should show up in the Cost of Goods on the Schedule C anyway. Congress killed the "retail value" deduction years ago. If that is a audit-proof "dodge" to try to get us back to retail value........... I'd really like to know. best, ................john Link to comment Share on other sites More sharing options...
oldlady Posted August 27, 2014 Report Share Posted August 27, 2014 the guild looked into all this and within the past few years a change was made which allows us to deduct the full price paid by the ticket buyer. Link to comment Share on other sites More sharing options...
Guest JBaymore Posted August 27, 2014 Report Share Posted August 27, 2014 The change was proposed.... but I thought it was defeated yet again. Are you sure. I checked this about a month or so ago on the IRS forms/publications... and it still says you (as the ARTIST) can't. best, ...............john Link to comment Share on other sites More sharing options...
Mark C. Posted August 27, 2014 Report Share Posted August 27, 2014 John You may be right( I'm not sure) if I recall my now retired tax advisor of 28 years may have suggested this shift as to advertise category if I'm published in the info. And No I have not yet had to survive a tax audit but have slept at a Holiday Inn if that counts. I'll check this out again which my new tax account person this year.It does figure that the artist gets sc--ed again as to taxes so I would not be surprised . Seems whenever our lobbyist (you know the art lobbyists) grease the wheels of Congress all we get is dirty hands.Looks like I'll be posting from the slammer in an orange suit for those donations. Maybe I can get a cell next to Martha Stuart so I can keep up on the color trends. Mark Link to comment Share on other sites More sharing options...
GEP Posted August 27, 2014 Report Share Posted August 27, 2014 When I was working as a designer, my accountant allowed my to deduct pro bono work as "advertising" say if I designed a brochure for a charity for free, and included the text "Brochure design donated by Mea Rhee [phone number]." So what Mark said is not unheard of, though I've never done it with pottery. My understanding from my accountant was that we were "fudging" the rules a little. The tax codes do not specifically say that we can call our donations "advertising" just because it's mentioned in print somewhere. However, it's possible to interpret things that way. If you think you can back up the claim in the event of an audit, go for it. Link to comment Share on other sites More sharing options...
Chris Campbell Posted August 27, 2014 Report Share Posted August 27, 2014 Empty Bowls sometimes. Generally if I am going to donate... I give cash. Mark.... have you ever been audited by the IRS? Everything I have ever seen or heard on this subject says that as the artist making the work, you can only take the normal cost of materials (no self labor) that should show up in the Cost of Goods on the Schedule C anyway. Congress killed the "retail value" deduction years ago. If that is a audit-proof "dodge" to try to get us back to retail value........... I'd really like to know. best, ................john The best way to do this is to team up with another artist and donate each other's work. ( You did not hear that from me.) I seem to recall that in order to use the retail value, you have to have receipts to show you have sold the work for the same price in the past. However ... my hazy memory also recalls that there was a high dollar value attached to this rule. I am not a tax pro, obviously. Link to comment Share on other sites More sharing options...
NFallon Posted August 27, 2014 Report Share Posted August 27, 2014 Every year I donate to an empty bowl event. I tend to throw a lot of small teabowls to test glazes. The event organizers don't mind "seconds". It clears out the studio for more testing and experiments. Plus I am into the charity...elder care...which gets closer and closer to my personal reality. Link to comment Share on other sites More sharing options...
Guest JBaymore Posted August 27, 2014 Report Share Posted August 27, 2014 Chris, if you buy each other's work, you each have to declare that money as income... and pay taxes on it. best, ..............john Link to comment Share on other sites More sharing options...
Mark C. Posted August 27, 2014 Report Share Posted August 27, 2014 Chris, if you buy each other's work, you each have to declare that money as income... and pay taxes on it. best, ..............john Its a never ending circle of taxes and paperwork. Link to comment Share on other sites More sharing options...
Mark G. Posted August 30, 2014 Report Share Posted August 30, 2014 As a gallery owner and a potter, I am asked at least 2 to 3 times a month to donate artwork/pottery. My wife is also an artist (painter). We feel that giving your work away has little to no exposure value and in fact, devalues your work. We do donate to a few select charities, but instead of giving artwork, we give gift certificates for classes. This brings people into the studio/gallery and on many occasions, they bring friends (paying students) to take the class with them, or they purchase artwork when they attend the class. There are other options to donating. We have organized auction events for charities and have the artist set the minimum bids for their artwork. Each artist is then paid their normal consignment (50% of the sale price) for the sold items. Our gallery then makes a cash donation (tax deductible) of the amount of our consignment fee. If the work receives no bids at the minimum, it is returned to the artist. This arrangement provides money to the charity and compensates the artist for their work. Win - Win!!! Two weeks ago I participated in an art charity function and along with several other artists, displayed some of my work. The charity sold several pieces and they kept a 35% commission. I was paid the balance. Good exposure. Made some nice sales. Got a ticket and enjoyed some nice food and wine. The charity made money on the artist's commissions and ticket sales. Win-Win!! I encourage artists to assist local charities to structure events that provide at least some compensation to the artist. Patrons are then supporting the charity and the local art community. Regarding tax deductions, the IRS rules are very clear. If you want a tax deduction, sell the pottery and donate cash. Mark Golitz BluSail Gallery Morehead City, NC Link to comment Share on other sites More sharing options...
Up in Smoke Pottery Posted September 3, 2014 Report Share Posted September 3, 2014 I typically donate to a few events every year, typically the same ones year after year, all of which send nice thank you notes. I have had reaped benefits from a couple of the events. A piece that was donated to local Arts Program, (black tie event), the purchaser contacted me afterwards and has purchased additional pieces, as well as a couple others have approached us at festivals saying they found my work from the "_____" event, some have purchased others have not. One of our 1st festivals was almost a donation, sold 3 pots over 3 days, and donated one to the event sponsors for their raffle. That donated piece lead to a gallery contract, which has been our best selling gallery ever since. Luckily we have been blessed with returns from our donations, but we are very selective, and have to feel connected to the cause in someway. Chad Link to comment Share on other sites More sharing options...
alabama Posted October 29, 2014 Report Share Posted October 29, 2014 Hey, I normally donate pottery to empty bowls and to the local humane society. There has been times that pottery 2nds were donated to historic sites that have living history programs that can use 18th century replicas. (Cracked rims and missing handles) Things I couldn't sell but were highly appreciated by them. The human shelter has a thrift shop which they sell donated items but if pottery is dropped off and specified that it goes to their annual auction, they store the items until the auction comes back around and is either given to the live auction for bids or the silent written auction. See you later. Alabama Link to comment Share on other sites More sharing options...
Pres Posted October 30, 2014 Report Share Posted October 30, 2014 Crazy all of the ins and out with the taxes, so I don't claim pottery donations. Its my personal time, and my decision. Last year I made 3 different bowls, one 8# and two 3-4#, all sold, and the amount brought in was way over what I would have sold them at. People in the area care about the arts in their schools, but not so much about crafts being done in the area. The empty/open bowls thing exposes me as a supporter of the arts, and people do remember me as a teacher at the HS. Enough for me. Link to comment Share on other sites More sharing options...
Benzine Posted October 30, 2014 Report Share Posted October 30, 2014 I'm make a few items, for a benefit next week. A graduate, from just this past year, has cancer. I knew him fairly well, so it's my pleasure to help out anyway I can. Link to comment Share on other sites More sharing options...
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