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Old 06-02-2018, 09:53 AM
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1099-misc antique mall

I have a client that is a multi-member LLC in florida. They are filing as a partnership (1065). As an antique mall, they rent booths to vendors and also display consignment items. The business rings up all merchandise at their register and pay sales tax to the state for gross sales. They also remit payment to the vendors when their merchandise is sold. The payments are monthly and they deduct 10% commission (or up to 50% for consigments), $3% credit card fee and booth rent.

My question: Does the antique mall need to issue vendors a 1099-misc for the net payments they make to them? If so, what box will include the amount? And, please site a reputable link that supports your answer (like from a court case, irc code section, irs site, etc.

Note: I have seen two answers to this in my research. One - issue them a 1099-misc if over 600 is remitted to the vendor. Two - don't issue them a 1099-misc since merchandise is not applicable for the 1099-misc rule.

Thank you!



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