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May 25, 2024
Question

Consignement Sales

  • May 25, 2024
  • 1 reply
  • 0 views

If the Consignee is selling items how can that be a service.  The service is is the Consignor selling it and the part that stays with the store is the part taxable, considered income.  I don't see it being a service or a profit for the client that is selling it at a lower price after buying it with money already taxed.  Please help understanding.

1 reply

Employee
May 25, 2024

Selling personal items for less than you paid for them is not taxable income. 

May 25, 2024

I  was reading the posts about 1099' ing  the consignee and most said that you had to if their share was more than $600, that is why I was asking for clarification.

Employee
May 25, 2024

If you do receive a 1099 report as other income and then report it again with a minus value to cancel it out.