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Boatsetter takes a 15% fee from my charter boat price and pays me the 85%. Is that 15% fee tax deductible? I only claim what they pay me as income, not the full amount.

Boatsetter is similar to uber or lyft, only for boat charters.
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3 Replies

Boatsetter takes a 15% fee from my charter boat price and pays me the 85%. Is that 15% fee tax deductible? I only claim what they pay me as income, not the full amount.

You will either enter 100% of the fee then deduct the 15% they keep as an expense or you only report the 85% you get. If they send you a 1099 with 100% listed use the hundred percent option. If they send you a 1099 listing only 85% then use the 85% option. It is just that simple.

Boatsetter takes a 15% fee from my charter boat price and pays me the 85%. Is that 15% fee tax deductible? I only claim what they pay me as income, not the full amount.

For the last two years I did this incorrectly. I only claimed the income paid to me but also claimed the fees.  How do I correct this?

dmertz
Level 15

Boatsetter takes a 15% fee from my charter boat price and pays me the 85%. Is that 15% fee tax deductible? I only claim what they pay me as income, not the full amount.

If you filed incorrect tax return for the past two years, amend the tax returns:

 

https://ttlc.intuit.com/community/amending/help/how-to-amend-change-or-correct-a-return-you-already-...

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