I'm a partner in a multi-member LLC in florida. We are filing as a partnership (1065) using turbotax business. As an antique mall, we rent booths to vendors and also display consignment items. The business rings up all merchandise at our register and remits sales tax to the state for gross sales. We also remit payment to the vendors when their merchandise is sold. The payments are monthly and we deduct 10% commission (or up to 50% for consigments), $3% credit card fee and booth rent.
My question: Does our antique mall need to issue vendors a 1099-misc for the net payments they make to them? If so, what box will include the amount? And, please site a reputable link that supports your answer (like from a court case, irc code section, irs site that explains it - not the 1099-misc instruction site, etc.)
Note: I have seen two answers to this in my research. One - issue them a 1099-misc if over 600 is remitted to the vendor. Two - don't issue them a 1099-misc since merchandise is not applicable for the 1099-misc rule. I do know that vendors need to issue our Florida LLC (partnership) a 1099-misc for rents paid since we're not a corporation.