Monday, April 9, 2012

Tax Question

Could anyone fill me in on whether or not you can write off pieces that you break out of the kiln instead of sell? If so would it be just materials cost or retail coast?
Thanks!

Patty

P.S. - Does anyone else cry at tax time?

8 comments:

cookingwithgas said...

we all do Patty! and the answer is no- you are already writing off materials. That is all you get to take....

Cathy Kiffney Studio said...

Unfortunately just the material costs, which you already deducted under cost of goods sold.

I am pretty sure this is right!

Yes, taxes make me cry too....

John Britt said...

I would ask the tax person but I don't think so. Otherwise I would be rich!

John Britt said...

When I cry there are no tears only salt and dust!

Anonymous said...

What about a gallery breaking a piece that was up for $425 yet won't take responsibility?

John Britt said...

I have gone to small claims court.

Eleanore said...

Yes, there's no tax deduction on the broken piece: Only a claim against the gallery - and if they pay, it's income!

Linda said...

As far as the piece broken out of the kiln, that is unfortunately yours, hon. Cost of the goods used to make it is all you can claim, and as we all know, that is dirt.

As far as a gallery breaking a piece...liability should be clarified in your consignment agreement. If not, you will have a long involved disagreement with the gallery owner.
I can't stress enough how important signed agreements are....signed and dated by both parties.