Dealer filing 1099?

[Hulksdaddy1]

Tell him you need his ID-10-T Form.

 

 

 

[KPR Comics]

He's got his forms mixed up. It should be a W-9; however, like the others here have noted, that is still an inappropriate request.

[CKB]

New 1099 Reporting Requirements

 

Above link has a ton of good info on all this BS revolving around 1099s being issued by businesses doing transactions of $600 plus.

 

Bottom line from what I understand is that if you are not considering yourself to be a small business you can tell him to shove it.

 

Now if you are doing a ton of sales this year and might come under the scrutiny of the IRS you may want to comply. If you can say this was a sale as a hobby versus small business than no worries. If there is any doubt in your mind I recommend talking with a CPA.

 

The past 3 years I have done $20,000 + and 200+ transactions on eBay with PayPal and you do not want to get on the IRS' radar. I would worry about the person attempting to 1099 you even if you do not provide the SS #. Below is some info on it.

 

Issue Form 1099-MISC without a SSN or TIN if you are unable to get this information from the contractor. If the contractor does not have a TIN and refuses to provide you with a SSN, you may still issue Form 1099-MISC. The IRS may assess a $50 penalty against you for submitting an incomplete Form 1099. However, if you can show the omission was due to a reasonable cause and not willful negligence, the IRS may grant an exemption to the penalty. Failure of the payee to return a complete Form W-9 to you may be grounds for an exemption.

 

 

 

I thought these 1099 reporting requirements were repealed.

 

[jmg3637]

The most onerous and stupid provisions of the 1099 reporting rules were overturned, but 1099 reporting still exists.

 

I have to send a 1099 to any Independent contractor who earns more than 600 in a year. Those would usually be individuals and would be based on their SSN.. If the individual has their own corporation i do not need to issue a 1099.

 

I also have to report via 1099 any payments paid to an Attorney or Accountant even if they have their own corporation.

 

I also have to issue a 1099 to anyone who i pay RENT to. It does not matter if the entity I am renting from is an individual or a corporation.

 

In prior years my IT person was operating as a Sole Proprietorship and i had to issue him a 1099 for everything i spent with him, even hardware. SInce he has incorporated i no longer have to issue him a 1099. On the other hand the print shop I use is still operating as a Sole Prop and i have to issue him a 1099 for everything i paid him.

 

I am not sure where it stands for Comics, but I can see where a comic store/Pawn Shop should to have to issue a 1099 for items they purchased from an individual. That does not mean that you have to pay tax on the entire amount. You should be able to reduce the income by the cost of goods sold as well as other related expenses. Even if the Store/dealer does not issue you a 1099, you are legally required to report the income and pay taxes on the gain. I am not sure if the gains on comics are subject to capital gains.

 

 

 

 

[jimjum12]

Collectibles are taxed at 28% ...... The powers that be want to discourage you from mixing happiness and investing...... otherwise, why would you ever want to invest your money in THEIR companies with no guarantee on conditions or ROI ....... GOD BLESS.....

 

-jimbo(a friend of of jesus) (thumbs u

[techtre2003]

The most onerous and stupid provisions of the 1099 reporting rules were overturned, but 1099 reporting still exists.

 

I have to send a 1099 to any Independent contractor who earns more than 600 in a year. Those would usually be individuals and would be based on their SSN.. If the individual has their own corporation i do not need to issue a 1099.

 

I also have to report via 1099 any payments paid to an Attorney or Accountant even if they have their own corporation.

 

I also have to issue a 1099 to anyone who i pay RENT to. It does not matter if the entity I am renting from is an individual or a corporation.

 

In prior years my IT person was operating as a Sole Proprietorship and i had to issue him a 1099 for everything i spent with him, even hardware. SInce he has incorporated i no longer have to issue him a 1099. On the other hand the print shop I use is still operating as a Sole Prop and i have to issue him a 1099 for everything i paid him.

I am not sure where it stands for Comics, but I can see where a comic store/Pawn Shop should to have to issue a 1099 for items they purchased from an individual. That does not mean that you have to pay tax on the entire amount. You should be able to reduce the income by the cost of goods sold as well as other related expenses. Even if the Store/dealer does not issue you a 1099, you are legally required to report the income and pay taxes on the gain. I am not sure if the gains on comics are subject to capital gains.

 

 

 

I can agree with all of this up until the last part.

They don't have to issue a 1099 because the only thing they paid for is merchandise; no services. You mention you had to issue your IT guy a 1099 even for the hardware. This would be true because if you purchase both services and merchandise from the same vendor, you issue the 1099 for everything, you don't separate the two. This is how it was explained to me by our company's accountant anyway.

[Conan_Aficionado]

The most onerous and stupid provisions of the 1099 reporting rules were overturned, but 1099 reporting still exists.

 

I have to send a 1099 to any Independent contractor who earns more than 600 in a year. Those would usually be individuals and would be based on their SSN.. If the individual has their own corporation i do not need to issue a 1099.

 

I also have to report via 1099 any payments paid to an Attorney or Accountant even if they have their own corporation.

 

I also have to issue a 1099 to anyone who i pay RENT to. It does not matter if the entity I am renting from is an individual or a corporation.

 

In prior years my IT person was operating as a Sole Proprietorship and i had to issue him a 1099 for everything i spent with him, even hardware. SInce he has incorporated i no longer have to issue him a 1099. On the other hand the print shop I use is still operating as a Sole Prop and i have to issue him a 1099 for everything i paid him.

I am not sure where it stands for Comics, but I can see where a comic store/Pawn Shop should to have to issue a 1099 for items they purchased from an individual. That does not mean that you have to pay tax on the entire amount. You should be able to reduce the income by the cost of goods sold as well as other related expenses. Even if the Store/dealer does not issue you a 1099, you are legally required to report the income and pay taxes on the gain. I am not sure if the gains on comics are subject to capital gains.

 

 

 

I can agree with all of this up until the last part.

They don't have to issue a 1099 because the only thing they paid for is merchandise; no services. You mention you had to issue your IT guy a 1099 even for the hardware. This would be true because if you purchase both services and merchandise from the same vendor, you issue the 1099 for everything, you don't separate the two. This is how it was explained to me by our company's accountant anyway.

 

Yes, that's my understanding as well. That's exactly how we totaled the 1099 payments for the IT guy who was a outside consultant with the firm I used to work with.