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Topic: 1099 from a consignment |
Tom Wolverton
From: Carpinteria, CA
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Posted 27 Jan 2017 11:20 am
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I sold a musical instrument on consignment at a music store and the store claims the check they sent to me is income, so they are sending a 1099 to me and also reporting this to the IRS. Is this common practice? _________________ To write with a broken pencil is pointless. |
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Brooks Montgomery
From: Idaho, USA
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Posted 27 Jan 2017 11:51 am
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They have a strict accountant who is covering their butt in case of an audit. I know that I'm dealing with a lot more 1099's than I used to.
Good name for a working man's band "The 1099's"
(The Ten-Ninety-Nines for you over the pond) _________________ A banjo, like a pet monkey, seems like a good idea at first. |
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Jim Cohen
From: Philadelphia, PA
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Posted 27 Jan 2017 12:14 pm
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I'm no CPA but I have never heard of giving someone a 1099 for sale of a physical object, only for services rendered. I believe one would be liable to pay tax on any profit made on the sale but that's all. So if you bought the item for $500 and sold it used for $300, there is no profit, only a loss (which can be counted against profits made elsewhere). I'd check this with an accountant if I were you. Maybe a Forumite CPA will come along here... _________________ www.JimCohen.com
www.RonstadtRevue.com
www.BeatsWalkin.com |
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Tom Wolverton
From: Carpinteria, CA
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Posted 27 Jan 2017 2:37 pm
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Thanks. I talked to the store. They backed down. Their accountant was being super conservative. They dropped the idea. Sheesh.
Great band name. _________________ To write with a broken pencil is pointless. |
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Jim Cohen
From: Philadelphia, PA
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Rich Upright
From: Florida, USA
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Posted 27 Jan 2017 4:50 pm
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I don't see how selling something you own can be considered income. Tell 'em to pound salt. _________________ A couple D-10s,some vintage guitars & amps, & lotsa junk in the gig bag. |
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Brooks Montgomery
From: Idaho, USA
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Posted 27 Jan 2017 5:10 pm
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Rich Upright wrote: |
I don't see how selling something you own can be considered income. Tell 'em to pound salt. |
It sucks, but if you deducted/depreciated the guitar on a prior tax year as a professional player on your taxes, then it'll be income. At least according to "those that must be obeyed ".
(cash is king!) _________________ A banjo, like a pet monkey, seems like a good idea at first. |
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Jeffery Self
From: Spring City,Tennessee, USA
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Posted 9 Feb 2017 4:17 pm
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Rich Upright wrote: |
I don't see how selling something you own can be considered income. Tell 'em to pound salt. |
_________________ If it's a penny for your thoughts!!!
Why must everyone put in their two cents worth???
Remembering Larry Self (1936-2014) |
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Donny Hinson
From: Glen Burnie, Md. U.S.A.
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Posted 7 Mar 2017 8:19 am Re: 1099 from a consignment
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Tom Wolverton wrote: |
I sold a musical instrument on consignment at a music store and the store claims the check they sent to me is income, so they are sending a 1099 to me and also reporting this to the IRS. Is this common practice? |
No, that's wrong, a 1099 form is not required for reporting sales income. If they sold an item for you, then technically, you should send them a 1099, because you are "the employer" - and you paid them a commission fee for their service.
Legally, you're required to report any profit you made as income...but most people don't - unless it's their business, or it's a lot of money. |
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