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

Fiscal year

A 12-month period ending on the last day of any month other than December. Partnerships, S corporations, and personal service corporations are limited in their choice of fiscal years and face special restrictions.

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