Submitted By: someone
Answered: May 30, 2018 11:42 pm

I inherited a piece of art that I sold through a gallery. Can I deduct the gallery’s commission?

The commission paid to the gallery is a selling expense that reduces the sales proceeds reported for the transaction. Thus, the commission effectively reduces the amount of gain (or increases the amount of loss) for the sale.

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Tax Glossary

Unrecaptured Section 1250 gain

Long-term gain realized on the sale of depreciable realty attributed to depreciation deductions and subject to a 25% capital gain rate.

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