Digital BW, The Print

Well,of course,to each his own but one who sells things,declares the
money earned as income, and takes the appropriate expense deductions
is, by definition, a pro.That is recognised even by the friendly IRS
folks. The hobbiest rules you refer to only come after too many years
without taxable profits shown. I made the assumption that you would
have done the right thing and declared the income.
 It's a time honored and honorable practice of small business men to
donate money to their favorite charitys. Where do you suppose the
funds come from and how were they initially gained? It isn't
particularly creative. It is just an accurate description of what
actually happens anytime any business person gives money.
That said,it's off topic here so enough. I'm sure your donation will
be appreciated in whatever form.
 
Regards
Duane




--- In DigitalBlackandWhiteThePrint@yahoogroups.com, Harry Lockwood
<hflockwood@...> wrote:
>
> Very creative, Duane.  And I think the IRS would agree to that
during the
> inevitable audit.
> I suspect they would claim (correctly) that I¹m not a pro
photographer, just
> a hobbyist looking to support my retirement activities.
> No, I think I¹ll simplify the process, take a (small) financial hit and
> avoid an audit.  And pat myself on the back for my generosity.
> 
> Harry
> 
> 
> On 6/14/07 10:52 PM, "dlruckus" <dlruckus@...> wrote:
> > 
> > 
> > Actually Harry. It wouldn't quite be a wash. You would be deducting
> > all your production cost up front as a business expense on the sale as
> > well as some proportion as overhead etc just as any other business
> > would do on a merchandise sale. Since the transactions are totally
> > independent, you would be able to treat the cash gift as just that and
> > it would be fully deductible. So you would be able to,in a sense,
> > double dip,perfectly legally. Your action would have the effect of
> > causing Uncle Sam to help in the contribution. How's that for a bit of
> > the butterfly wings/windstorm connection?
> > 
> > Regards
> > Duane
> > 
> > --- In DigitalBlackandWhiteThePrint@yahoogroups.com
> > <mailto:DigitalBlackandWhiteThePrint%40yahoogroups.com> , Harry
Lockwood
> > <hflockwood@> wrote:
> >> >
> >> > The way around this is to sell at the materials cost, and then
> > donate the
> >> > proceeds.  But thatï¿1Ž2s the same as simply donating the
collection and
> >> > claiming the materials cost.  However, keeping the price that
low will
> >> > enhance the probability of sales, hence income to the arts center.
> >> > 
> >> > Thanks to everyone for your time and valuable advice.  As Tyler
> > suggested, I
> >> > should perhaps focus on generosity to the arts center, which I
will do.
> >> > 
> >> > Harry
> >> > 
> >> > 
> >> > On 6/13/07 6:25 PM, "Brian Ellis" <bellis60@> wrote:
> >> > 
> >>> > >  
> >>> > >  
> >>> > >  
> >>> > > 
> >>> > > "Why don't you just sell images
> >>> > > (indicating on the price card that the proceeds will be
donated), and
> >>> > > donate the proceeds back to the art center as cash and value
your
> >>> > > donation as the actual cash sale. That way you get the full
deduction
> >>> > > of the sale price, the sale validates the amount of the
reduction,
> >>> > > and the art center gets cash for the building fund."
> >>> > > 
> >>> > > Because there would be a taxable gain on the sale, which would
> > offset the
> >>> > > charitable contribution deduction and the whole thing would
be a wash.
> >>> > > 
> >>> > > ----- Original Message -----
> >>> > > From: "richardeskin" <richeskinphoto@
> >>> > > <mailto:richeskinphoto%40comcast.net> >
> >>> > > To: <DigitalBlackandWhiteThePrint@yahoogroups.com
> >>> <mailto:DigitalBlackandWhiteThePrint%40yahoogroups.com>
> >>> > > <mailto:DigitalBlackandWhiteThePrint%40yahoogroups.com> >
> >>> > > Sent: Wednesday, June 13, 2007 8:14 PM
> >>> > > Subject: [Digital BW] Re: Valuing Prints
> >>> > > 
> >>> > > It isn't clear whether the images are being donated to be
hung in
> >>> > > their new or refurbished building, or as a cash contribution
to the
> >>> > > building fund.  If the latter why don't you just sell images
> >>> > > (indicating on the price card that the proceeds will be
donated), and
> >>> > > donate the proceeds back to the art center as cash and value
your
> >>> > > donation as the actual cash sale. That way you get the full
deduction
> >>> > > of the sale price, the sale validates the amount of the
reduction,
> >>> > > and the art center gets cash for the building fund. Any
images not
> >>> > > sold can be donated after the exihibit at material value or, in
> >>> > > appreciation for your donation, to be permanently exhibited
in the
> >>> > > new building.
> >>> > > 
> >>> > > --- In DigitalBlackandWhiteThePrint@yahoogroups.com
> >>> <mailto:DigitalBlackandWhiteThePrint%40yahoogroups.com>
> >>> > > <mailto:DigitalBlackandWhiteThePrint%40yahoogroups.com> ,
"hflockwood"
> >>> > > <hflockwood@> wrote:
> >>>>> > >> >
> >>>>> > >> > In a juried process, I was selected to exhibit my (B&W)
prints at a
> >>> > > non-profit art center in VT
> >>>>>>> > >>> >>
> >>>>> > >> > Since the center is in the midst of a fund raising
effort, I'm
> >>> > > contemplating donating the entire
> >>>>> > >> > collection to their building fund, rather than trying
to sell
> >>> > > them.  Obviously, this raises the
> >>>>> > >> > question of how to value the collection for tax purposes..
> >>>>> > >> >
> >>>>> > >> > So, if I am to claim a charitable deduction, how do I
value the
> >>> > > donation?  The center has
> >>>>> > >> > agreed that $400 per print, or $10,000 for the
collection, would be
> >>> > > easily justified.
> >>>>> > >> >
> >>>>> > >> > I'm looking for guidance from others who may have faced
a similar
> >>> > > situation.
> >>>>> > >> >
> >>>>> > >> > TIA.
> >>>>> > >> >
> >>>>> > >> > Harry
> >>>>> > >> >
> >>> > > 
> >> > -- 
> >> > 
> >> > Harry F. Lockwood
> >> > 
> 
> 
> -- 
> 
> Harry F. Lockwood
> 
> 
> 
> 
> [Non-text portions of this message have been removed]
>