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Level 3
posted Apr 1, 2024 5:50:50 PM

Event Fee on prediscounted price or discounted price

I am in CA.  I am planning an event.  They are charging me a 20% event fee ontop of the original price, not the discounted price.

 

When you buy something, and say the original price is $10 and the sale price is $8, you pay taxes on the sale price of $8 not the original price of $10.  So why would the event company charge you a 20% fee of the original price instead of the discounted price?

 

They are also saying they need to charge taxes are ontop of the original price + event fee, not taxes ontop of the price.  Are service fees taxable?

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1 Replies
Level 15
Apr 1, 2024 5:54:19 PM

We are here to answer questions about income tax and about the TurboTax tax software.   Your question about your "event"  is not related to income tax.