- Joined
- Oct 17, 2016
- Messages
- 1
- Reaction score
- 0
- Country
I have a client who rents a mall (does not own the property). He has several antique dealers in which he sells the product for them, deducts a percentage of their sales for rent and then pays the dealer the remaining balance.
Does he report the income on his federal tax return as sales less the dealer payments (COGS) or does he report the % of sales as non-passive rental income? Or, is the income really not rent but a commission that he is earning?
Does he report the income on his federal tax return as sales less the dealer payments (COGS) or does he report the % of sales as non-passive rental income? Or, is the income really not rent but a commission that he is earning?