Do I need to submit some xx99 forms?


H

HappyPainterBev

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
 
B

Bryan Kellar

Hello Bev!

HappyPainterBev said:
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.
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
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top