Event Service Cash Pass through

Forum|Forum|3 years ago
March 23, 2023
1 reply
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My wife has a small business that provides event secretarial services for dog clubs. She collects entry fees and passes the fee to the sponsoring club minus contracted fee and expenses. How is the cash flow handled by the IRS in TT as it is not directly an income but a pass through of cash? Actual income is a very small part of the cash received.

Thanks

TurboTax Home & Biz Windows

ThomasM125

If the deposits are not reported to your spouse on a 1099-NEC or similar form, you could treat them as customer deposits and not enter them on your tax return as income. In that case, you would just report as income the amount that is kept.

Otherwise, you will need to report the full amount listed on the 1099 form as income and deduct the amount passed through as a commission or similar expense.

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