Consignement Sales

[sylviashomedecor]

If the Consignee is selling items how can that be a service.  The service is is the Consignor selling it and the part that stays with the store is the part taxable, considered income.  I don't see it being a service or a profit for the client that is selling it at a lower price after buying it with money already taxed.  Please help understanding.

[Bsch4477]

Selling personal items for less than you paid for them is not taxable income. 

[sylviashomedecor]

I  was reading the posts about 1099' ing  the consignee and most said that you had to if their share was more than $600, that is why I was asking for clarification.

[Bsch4477]

If you do receive a 1099 report as other income and then report it again with a minus value to cancel it out. 

[sylviashomedecor]

I am the one opening a consignment store and I know the customers are not going to agree to be 1099'd after going over 599

[Bsch4477]

It’s likely that you would not have to issue a 1099. It would be well with your local tax professional. to consult