Are restaurant franchise fees paid over the course of the year reportable in box 2 of 1099 misc?

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Anonymous

Yes, the amount found in Box 2 of 1099-MISC are for the royalties fees that are paid to the franchiser.

As a franchise operator the amount is reported on your schedule C as a business expense.

The following TurboTax products can be used for reporting self-employed business.

Level 2

Does this include franchise fees paid to a corporation?

Level 11

Generally, it is not necessary to issue a 1099-Misc to corporations, with a few exceptions.

The following types of payments require a 1099-Misc to be issued to a corporation;

* Medical and health care payments reported in Box 6

* Gross proceeds paid to an attorney in Box 10

* Payments in lieu of dividends or tax exempt interest in Box 8

I am including the instructions for the 1099-Misc if you need more detailed information:

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