1099-nec form

[dg042461]

I own a small second hand store and rent space out to vendors and see their items for them.  I collect and submit all sales tax.  I do not take a commission on their sales but I do deduct rent from any sales they have each month.  I supplied each vendor with a 1099-nec showing the total gross sales they had for the year.  My question is am I supposed to supply another form to them showing what was deducted from their gross sales for rent paid?  If so what form?

[DianeW777]

No, it is not necessary to report the deductions unless you reported the net fees on their 1099-NEC. Hopefully, they will know that the income you reported included the full amount of the sale and not less expenses.  They should then deduct expenses from the income on their own tax returns to arrive at their net.  It may be a good idea to provide a statement to then to that effect which would make it very clear.

You would report rents, your own sales or other income and then any expenses attributable to your second hand store, including expenses to operate. Also, if you report all monies taken in, you would report the funds paid to each vendor as an expense.

[dg042461]

So if they are asking for documentation of rent they paid from their sales I can just give them a general statement letter from the business with total rent paid for 2024?

[dg042461]

Also they do receive a monthly statement that indicates all deductions taken from their sales would that be enough for them for proof if audited on what they paid for rent

[LeticiaF1]

Yes, if you are providing them monthly statements showing all the deductions taken from their sales, this should be sufficient proof for them. 

@dg042461