Donating Your Product to Charity.

Hi June,

I am a mixed media artist, self employed part time for 3 years and this is the first year as a full time artist.

I am donating a piece of art to a non profit. I know I cannot take a "fair market price" deduction. Can I deduct the cost of my materials, direct and indirect costs?

I fill out a Schedule C. Because I'm doing this to also get my name out, do artists ever deduct their costs as advertising expense?

Thank you.
Rebecca
Des Moines, IA


Hello Rebecca,

Yes, when donating your work you may deduct your actual costs. Categorizing the costs as advertising expense is fine.

There is more info on indie income and business expenses in my book Self-employed Tax Solutions.

-- June