Hello, I am a Computer Technician and a sole proprietor and I have a question about a 1099 I receive from one of my accounts. Quite often I purchase computer hardware for this particular client and they always request a copy of the receipt, which I always give them. I do not mark up any of these purchases and charge them exactly what I pay. Obviously I charge the client for the labor to install the hardware and when I send them an invoice it is detailed and has one line for the hardware purchased and another for the labor. So essentially I am doing the client a favor and going to the store for them and they pay me later. My question is, the client is including these purchases on the 1099 they send me every year and I am not sure if this should be done? This is obviously increasing my income and depending on the type of purchases can add up to allot of money. When I do my taxes I do include these purchases as items bought and sold but I am not sure if what they are doing is correct. Can someone tell me if I need to advise the client not to include these items on my 1099 or if I need to bill them on a separate invoice just for the hardware? I kind of feel that what they are doing is not right but I'm just not sure. I would appreciate any advice anyone could give me. Thank You, Scott
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