Using Home and Business what category should I add venue and vendor expenses?

[robatussin]

For my business I pay for a venue and a guest speaker to come speak at there. I collect all of the funds then pay both parties.

For example, I may collect 10,000. Pay the venue 4K, the speaker 5K, and take a 1K profit. For my taxes I need to pay tax on my 1K, not the full 10K. I thought I would simply expense all of the 9K? I’m new to this… Any help is appreciated. 

Thank you! 

[AnnetteB6]

The venue expense could be listed as 'rent' or as a miscellaneous business expense where you can specify a description and the expense amount.

The speaker fee may fall under contract labor if the speaker was an independent contractor.  Also, if that is the case, you would need to issue the speaker a Form 1099-NEC if you paid them more than $600.  

If the speaker was not an independent contractor and you paid a company for the speaker's services, then you could list that expense as a miscellaneous business expense with a description and amount.