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jdefl4444
New Member

I rent a booth in a antique store. What income do I declare - gross sales before sales commission or net sales after commission?

In this example what is the federal income that I report for tax purposes?  My gross sales for the month is $100, the store keeps $10 sales commission and gives me a check for $90.  Is it A) The store's income to declare is $10 and mine is $90, or B) My income to declare is $100 with a $10 expense for commission?  I assume A is the right answer but need to be sure.  Thanks!

4 Replies
KittyM
Level 2

I rent a booth in a antique store. What income do I declare - gross sales before sales commission or net sales after commission?

Actually, the correct way is to report 100% of your sales and then deduct the commissions you pay as an expense.

  

jdefl4444
New Member

I rent a booth in a antique store. What income do I declare - gross sales before sales commission or net sales after commission?

Follow up question: If that is the case then isn't the store owner also reporting the $10 commission as income and then we are both paying taxes on that $10?  Thank you.
jdefl4444
New Member

I rent a booth in a antique store. What income do I declare - gross sales before sales commission or net sales after commission?

Oh, now I see - once I add the $10 expense, I'm only paying taxes on the $90 net.
KittyM
Level 2

I rent a booth in a antique store. What income do I declare - gross sales before sales commission or net sales after commission?

Yes, you pay taxes on the amount after expenses.
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