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I'm opening a store. I will have crafters display their wares for sale & give them 100% of their sales. Do I give them a 1099 or are they responsible for their own money

 
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MinhT
Expert Alumni

I'm opening a store. I will have crafters display their wares for sale & give them 100% of their sales. Do I give them a 1099 or are they responsible for their own money

You do not need to report their sales or issue them any tax form. They are responsible for reporting these sales on their tax returns.

You are just providing a sales space for them. If they paid you rent or a percentage of their sales, then you report this income in the business section of your return.

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2 Replies

I'm opening a store. I will have crafters display their wares for sale & give them 100% of their sales. Do I give them a 1099 or are they responsible for their own money

so, when I pay them how do I cover this as an expense? misc expense??
MinhT
Expert Alumni

I'm opening a store. I will have crafters display their wares for sale & give them 100% of their sales. Do I give them a 1099 or are they responsible for their own money

You do not need to report their sales or issue them any tax form. They are responsible for reporting these sales on their tax returns.

You are just providing a sales space for them. If they paid you rent or a percentage of their sales, then you report this income in the business section of your return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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