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Old 04-12-2014, 05:05 PM
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Cost of revenue?

I own a travel agency, and occasionally a client will pay me directly for a vacation package and then I pay the tour company a net amount, deducting my commission.
How and where to I report the amount I paid to the tour company?
Say a client pays me $1000 for a vacation package (gross income) and I deduct $100 for my commission (net income) how do I report the $900 paid to the tour operator? I am a sole proprietor LLC filing a schedule C.
Thank you for any help you can provide.



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Old 04-13-2014, 02:21 AM
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Join Date: Oct 2010
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Quote:
Originally Posted by tylergoo View Post


#1;How and where to I report the amount I paid to the tour company?


#2;Say a client pays me $1000 for a vacation package (gross income) and I deduct $100 for my commission (net income) how do I report the $900 paid to the tour operator? I am a sole proprietor LLC filing a schedule C.
Thank you for any help you can provide.
#1;you need to report it on your SCh C of 1040 line 10, sine the company is not your non employee and you do not issue 1099 to the company, to deduct it as your operating biz exp on your return.aqlso,Discounts you offer to your customers are deductible in certain situations. The discount must be taken from the commission you receive on the transaction. If the discount is underwritten by a hotel, airline, rental car company or other vendor, it is no longer deductible for the travel agent.


#2;as mentioned above uNLESS you hired the company as an independent contractor for you, you do not need to issue 1099 to the company but you may deduct it as fee on your return.



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