Do I need to submit some xx99 forms?

Discussion in 'Tax' started by HappyPainterBev, Dec 26, 2003.

  1. I sell on Ebay, recently opened my own website, now have my
    business license.

    On my website I want to sell pattern packets made by other
    artists for a percentage of the selling price. So I have to
    submit any tax forms to them to claim income or do I conduct
    it just as I do Ebay? Is what I want to do considered
    reselling, consignment, or what? Sales tax is not in
    question at all since I do not sell in my home state of
    Tennessee' not on purpose, just have found my customers bid
    and buy and I ship to other states.

    Thanks in advance for your responses! Bev
     
    HappyPainterBev, Dec 26, 2003
    #1
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  2. HappyPainterBev

    Bryan Kellar Guest

    Hello Bev!

    It does not appear that you will need to send any 1099s to
    your "suppliers". If you buy the patterns then sell them to
    the public for a higher cost, you will keep really good
    records of what you pay for inventory, how much you take in
    total sales income, and other expenses.

    If you are providing a service where you make the sales and
    others pay you a commission, they may need to give you a
    1099-MISC at the end of the year showing how much they paid
    you, if they are in business and they paid you over $600.00.
    In any case, you will still keep careful records of income
    and expenses for preparing your return, no matter what their
    amounts.

    For tax purposes, it does not matter whether the sales are
    made on your website, on eBay, or in person. You may want
    to seek the advice of a tax professional who can give you
    some advice on what records to keep and how to keep them, as
    well as the best way to present them on the return.
    Whatever you pay will probably save you in either savings on
    taxes or saving added hassle with the authorities down the
    road.

    Bryan Kellar, EA
     
    Bryan Kellar, Dec 29, 2003
    #2
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