Online Marketplace inventory

[Skyline5gtr]

Hello all, I run RGBswap.com a PC Hardware Marketplace where users list products for sale like a classified section. I am trying to figure out how do do my taxes more specifically do I consider products listed as "inventory" even tho I do not actually own the products and do I consider transactions "sales" since I only generate income on commission per sale.

Thanks all

[ColeenD3]

No. You are right. You do not own it so you do not keep inventory on your tax return. Your income is the commissions.

[Skyline5gtr]

Thank you so much for reply this stuff gets complicated fast lol, Do I need to file the "sales" information somewhere so for example, a vendor sells a part worth 500 and I make 20 dollars in commission. What do I file that sale which shows 500 in my Paypal account temporarily until I pay the vendor and what would the vendor Payouts be considered

[ColeenD3]

 A payment settlement entity (PSE) must file Form 1099-K, Payment Card and Third Party Network Transactions, for payments made in settlement of reportable payment transactions for each calendar year. A PSE makes a payment in settlement of a reportable payment transaction, that is, any payment card or third party network transaction, if the PSE submits the instruction to transfer funds to the account of the participating payee to settle the reportable payment transaction.

For more information, see 1099-K.