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Author: kgood16 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120795  
Subject: 1099 for consignment sales? Date: 5/25/2010 12:59 PM
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Hi, I just started working for a company who sells art work on consignment. Do I need to get W-9's from and issue 1099's to the artists we are selling for?

Thanks in advance!
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110513 of 120795
Subject: Re: 1099 for consignment sales? Date: 5/25/2010 4:51 PM
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I just started working for a company who sells art work on consignment. Do I need to get W-9's from and issue 1099's to the artists we are selling for?

It sounds like reportable "other income" to me.

Phil
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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110515 of 120795
Subject: Re: 1099 for consignment sales? Date: 5/26/2010 9:33 AM
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I just started working for a company who sells art work on consignment. Do I need to get W-9's from and issue 1099's to the artists we are selling for?
====================
It sounds like reportable "other income" to me.

Phil
Rule Your Retirement Home Fool
==============

Maybe, but does the consignment store have to issue a 1099? I would think it would be considered inventory purchase to the consignment store so, currently, would not require a 1099.

I haven't seen the new rules, so don't know if inventory item purhases are to be included in the 1099s.

If I sell my old TV on craig's list or whatever it's not taxable income, why should it be "other income" when I take it to a consignment store to sell it? Assuming, of course, I sell it for less than I paid for it.

Jean

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110516 of 120795
Subject: Re: 1099 for consignment sales? Date: 5/26/2010 10:25 AM
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If I sell my old TV on craig's list or whatever it's not taxable income, why should it be "other income" when I take it to a consignment store to sell it? Assuming, of course, I sell it for less than I paid for it.

You're confusing whether a transaction has to be reported with whether the transaction results in taxable income, two totally separate issues.

The 1099-MISC instructions say nothing about consignments one way or the other. I see your approach. I also see mine.

Phil
Rule Your Retirement Home Fool

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110518 of 120795
Subject: Re: 1099 for consignment sales? Date: 5/26/2010 1:17 PM
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If I sell my old TV on craig's list or whatever it's not taxable income, why should it be "other income" when I take it to a consignment store to sell it? Assuming, of course, I sell it for less than I paid for it.

The reporting requirement is different because you are dealing with an entity that is required to issue 1099s.

Whether or not the consignment shop has a responsibility to issue a 1099, it doesn't have the responsibility to determine the taxable income.

If a 1099 is issued, then the cost basis would reduce the taxable income. A 1099 only means that there is reported income. It doesn't mean that there is taxable income.

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