What are my reporting requirements for 1099s or Other Forms for Inventory purchases?

[DLMCPA]

Client buys scrap and collectible from private parties not businesses.  Sometimes she pays over $5000 and even $10000.    1099-K is not necessary.  Does anyone understand the Direct Payers portion of the 1099 MISC? 

[Anonymous_]

https://www.irs.gov/instructions/i1099mec#en_US_202401_publink100021160

[DLMCPA]

What constitutes the requirements to file?  My client is purchasing from private parties the inventory.  So client needs to report to the IRS the purchases over $5000 and get an SSA number or W-9 completed from the seller?

[Mike9241]

@DLMCPA The purchase of goods and other tangible assets is generally not covered by Form 1099-MISC. If the goods and supplies are part of the services provided by the independent contractors & LLCs, they would be included in the 1099-MISC form. If they are not part of the service provided, you do not need to report payments for equipment, supplies, or other tangible goods, including inventory.

[DLMCPA]

do you have a little direction to the code?

[MarilynG1]

There is a section in TurboTax to record Inventory on Hand at the beginning of the year, Total Inventory Purchases during the year, and Ending Inventory for a Business. 

Here's more detailed info on Inventory Tracking for a Business. 

1099's are not required to be issued to vendors from whom you purchase inventory items only.

Click the link for instructions on When to Issue a 1099-Misc.

@DLMCPA