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Business & farm
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.
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‎February 3, 2025
4:18 PM