Antique Booth taxes

Forum|Forum|1 year ago
March 5, 2025
1 reply
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We have an antique booth that we just started in Sept 2024. We pay the owner rent plus 10% commission. He collects and pays the sales tax. None of the items in the booth were purchased for resale, it is all stuff from our home.

We just received (Feb 28) a 1099-NEC from the mall owner, showing that he paid us "nonemployee compensation" for the amount of money we earned on our items. That doesnt seem right to me, he didnt pay us anything, we paid him 10% commission. He just collected payment from shoppers.

Am I wrong? I have never done it this way before.

PatriciaV

Employee

You are correct. If the income reported on Form 1099-NEC was generated by sales and not services, you shouldn't have received this form. If the owner collects payment from your customers on your behalf, he could have sent you Form 1099-K as a payment processor.

Your best option is to have a discussion with the mall owner and perhaps engage a local tax professional who can advocate on your behalf.

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