07-28-2007, 03:15 PM
Much as I appreciate your warnings simonm and alphadog, I don't think there's anything sinister or inappropriate going on here. My wife works with the gallery owners in other areas so we know they are trustworthy, though inexperienced in operating a gallery. The deal is that we are the ones selling the paintings, and we'll be paying the gallery owners a commission (on pre-tax sale price) in exchange for use of the gallery space and the gallery's advertising and staffing. They will be collecting sales money on our behalf. Since the gallery never buys any paintings from us, they don't own them, so I don't see how they could be responsible for the sales tax on them. GeneL's advice sounds to be right on the money, but I'll be checking with my tax accountant this week. I just wanted to get some upfront ideas as to how this worked to prep for talking to him.