You cannot deduct the price of something you did not pay for.

Dear June,

As an independent composer, one of my revenue sources is from the sale of my sheet music. I occasionally give away copies of my sheet music as a way of nurturing relationships with prospective commissioning clients. Digital technology makes this a simple and inexpensive way for me to reach out and keep my name out there. Can I claim a deduction for the retail value of the sheet music I give away?

Thanks so much!
Rick
State College, PA


Dear Rick,

No, you may deduct cost only.

The same would apply to musicians who give away their CDs as promotion.

The same would apply were a musician to give a free performance for a charitable organization. The only deductible expense would be any out of pocket costs.

The reason. You cannot deduct the price of something you did not pay for.

Best,
June