topic Re: deductions in Deductions & credits

deductions

pdhoch — Mon, 09 Mar 2026 05:24:43 GMT

I sell hand carved Santas through a non-profit gift shop. I determine the selling price. When an item is sold the non-profit retains 40% of the selling price as a commission. Example: $200 Santa sell for $200, n-p keeps $80 and sends me $120. Can I deduct the $80 or any portion of it as a donation to the n-p?

Re: deductions

MinhT1 — Mon, 21 Feb 2022 12:57:23 GMT

In your example, the $80 can be deducted as a business expense under Commissions.

It is not a donation, but a business expense claimed in your Schedule C.

Re: deductions

pdhoch — Mon, 21 Feb 2022 13:56:04 GMT

Thank you. In my example I did not mention that the non-profit sends me a 1099-NEC for $120. Actual numbers are $8200 in sales, $4920 sent to me, $3280 retained as commission. 1099-NEC is for $4920. Does that change your reply in any way?

Re: deductions

MinhT1 — Mon, 21 Feb 2022 14:08:52 GMT

In this case, commissions are already deducted from the amounts paid to you and reported on form 1099-NEC. You will then report the $4,920 as income and deduct your other expenses (such as supplies, etc...). No commissions expenses as they are already withdrawn directly from sales by the non-profit organization.

Re: deductions

pdhoch — Mon, 21 Feb 2022 14:10:03 GMT

Thanks again.