For a consignment craft store, do I 1099 vendors with over 600 in sales or over 5,000 in sales as discussed as direct sales in instructions on 1099 forms? Also line 3?

[Anita01 · Accepted solution]

The $5,000 relates to people to whom you have sold merchandise with the understanding that they are going to resell it, for example, if you sell $5,500 in merchandise to a customer who intends to take it and resell it online or at a flea market then you would report it is over $5,000 is sales.

The $600 refers to vendors or people to whom you pay money, for example, you paid commissions on merchandise you sold for a customer that totaled over $500 during the year.

[marketplacecanon]

So over 600 paid to vendors on a 1099 and this would be entered in Box 11 as NEC is this correct?

[pat-frawley]

What if the merchandise was sold on consignment and the person who's merchandise it is doesn't get his share of the sell until the items are actually sold.  In the this case, he received 1/3 of the sale and the person who sold kept 2/3  is that NEC?