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Old 01-25-2013, 12:20 PM
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artist 1099

client owns boutique for artists.

situation 1 - artists pay a fee, (income to boutique) to sell their wares, receive 100 % of sale amount (income to artist)~ situation 2 - artist puts items in boutique, when a sale occurs, artist receives 50% (income to artist) and boutique receives 50% (income to boutique)

does either of these situations warrant boutique to issue 1099misc to artist? if so why? if not why?

sorry, but I am having a hard time wrapping my head around this one and am getting arguments on all fronts...any help appreciated.



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Old 01-25-2013, 01:16 PM
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“does either of these situations warrant boutique to issue 1099misc to artist? if so why?”====>in sit. #1;artists, as self employers(or contractors) need to issue 1099 to the boutiques UNLESS the boutiques is either S- or C corp as long as the artists paid $600 or more(each paid $600 or more) during the tax year in the course of their trade or business to the boutiques. ALSO, UNLESS the artists are either S corp or C corp, the payers need to issue 1099 to artists as long as they paid more than $600 or more self employment income to the artists. I sit . #2;UNLESS the artist pays the boutiques more than $600 , the artisit doesn’t need to issue 1099 to the boutiques(as said UNLESS the boutiques is C – or S corp and the artist pays over $600 to the boutiques, then the artist needs to issue 1099 to the boutique). ALSO if the payer directly pays to both boutique and the artist, then the payer, UNLESS the boutique and the artist are C – or S corp , need to isse 1099s to the artist and ther boutiques as long as the payer pays more than $600 to the artist and the boutiques.

“ if not why?”===>As described above, it depends.



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