deductions

[pdhoch]

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?

[MinhT1]

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.

[pdhoch]

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?

[MinhT1]

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 No commissions expenses as they are already withdrawn directly from sales by the non-profit organization. 

[pdhoch]

Thanks again.