Quote:
Originally Posted by Fadrag Consignee sells items of personal property for individuals on eBay, and pays 85% of net sale proceeds to consignor. Various items sold for an individual (for example) will result in payments to consignor of a total $30,000 in 2014.
For the sale of personal property belonging to another person in this situation, does a 1099 need to be issued by the eBay seller to the owner of the property for the sales proceeds?
Thank you. |
Consignee sells items of personal property for individuals on eBay, and pays 85% of net sale proceeds to consignor. Various items sold for an individual (for example) will result in payments to consignor of a total $30,000 in 2014.===>>>>>>I guess aslongas the consignee sells personal pty, he would be required to send a 1099 to each unincorporated consignor that was paid over $600; he needs to use Form 1099-MISC to report that he made direct sales of at least $5k of consumer products to a buyer for resale anywhere other than a permanent retail establishment..
So far he should file 1099misc if the amount of resale is is $5k or above.
For the sale of personal property belonging to another person in this situation, does a 1099 need to be issued by the eBay seller to the owner of the property for the sales proceeds?======>>>>>>> if It's inventory - no 1099 required because no service is being performed. The sale wouldn't happen without the product being sold which then makes that Cost of Goods Sold.