Help.

[tinaoffhempstead]

I did a favor for a friend.  Now they need to send me a 1099? She will take the 1099 but how do I do that. She sold a Louie bag she bought for 2400 and I’m on Ss.

[bonjourami]

IRS is not requiring the 1099 for sales over $600 be filed again this year.But of course you know you should be filing for any sales on Ebay, no matter the amount of the sale.

[4pawsup*]

If she is a real friend if there is any tax to be paid she should pay it. She is your friend why worry?

[penguins_dont_fly]

@tinaoffhempstead 

You can file a 1099 yourself - you will need their SS# and other information.

https://www.irs.gov/filing/e-file-forms-1099-with-iris

BUT

I highly recommend getting a tax professional to do it for you ... and to help you with the tax ramifications of selling while on SS.

[penguins_dont_fly]

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@4pawsup* wrote:

If she is a real friend if there is any tax to be paid she should pay it. She is your friend why worry?

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Because eBay has the OP's tax information, not the friend's.

OP will need to file a 1099 with her friend's information to prove to the IRS who actually made the money.

It is fairly simple to do.  I used to do it every year when I had a business partner and when I had consignments.

[dbfolks166mt]

     Little confused by your post. Did you sell the bag for the friend or did she sell the bag for you? If you sold the bag and are reporting this income on YOUR income taxes then you need to show the income and the write-offs for the expenses which would include whatever amount of money you gave to your friend. That should also be what is reported on the 1099 you issue to her. When all is said and done unless you charged your friend something for selling the item you should have $0 net income from the transaction and this should not impact your taxes. Your friend will have to report the income on THEIR taxes as well and they can write-off any expenses such as the cost of the bag. 

     As others recommended I would get a tax professional to help you with issuing the 1099 and possibly with your taxes when you go to file them. 

[slippinjimmy]

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@tinaoffhempstead wrote:

I did a favor for a friend.  Now they need to send me a 1099? She will take the 1099 but how do I do that. She sold a Louie bag she bought for 2400 and I’m on Ss.

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The amount of money you paid out to your friend is Cost Of Goods just the same as anything you paid to acquire anything that you sell.

You are not a "payment processor" so you don't need to issue a 1099K and your friend is not a "seller" but rather a "supplier" of yours.

[inhawaii]

I never knew you could "swap" 1099s.

[frankenhobbit]

I'm reading it as the OP's friend sold something for 2400, anticipates getting a 1099 and wants to issue the OP one to offset it so there is no tax payable. The OP is on SS and I guess earns too little to make it taxable?

Could be wrong, it's not very clear. But if I am right, that super no bueno. 

[dbfolks166mt]

The amount of money you paid out to your friend is Cost Of Goods just the same as anything you paid to acquire anything that you sell.

You are not a "payment processor" so you don't need to issue a 1099K and your friend is not a "seller" but rather a "supplier" of yours.

     There are a dozen ways to handle this and OP did not provide enough detail which is why they should talk to a tax professional. It is difficult to tell if one or both of the parties involved actually had or made a profit. Lot of moving parts to this one to include the total cost of the item sold, eBay fees, shipping........  Not really sure who is claiming income and who is writting off what and who has receipts for what. 

[penguins_dont_fly]

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@inhawaii wrote:

I never knew you could "swap" 1099s.

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@inhawaii 

It isn't really a "swap" per se.

When I had a business partner, I was (and am still) a registered company in my state. Everything was (and is) under my Tax ID.

For tax purposes, I treated my "partner" as a consignor or independent contractor.  We split the profits 50-50 every month and I issued her a 1099-MISC as "other income" at the end of the tax year.

[albertabrightalberta]

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@dbfolks166mt wrote:

     Little confused by your post. Did you sell the bag for the friend or did she sell the bag for you? If you sold the bag and are reporting this income on YOUR income taxes then you need to show the income and the write-offs for the expenses which would include whatever amount of money you gave to your friend.

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According to the OP's completed listings, @tinaoffhempstead was the seller of a $1000 LV bag. 

ETA: Hmm. I wonder why that bag isn't "Authenticity Guaranteed." I wonder whether it would have passed. Pictures are showing the condition or the details needed to prove authenticity.

[penguins_dont_fly]

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@albertabrightalberta wrote:

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According to the OP's completed listings, @tinaoffhempstead was the seller of a $1000 LV bag. 

ETA: Hmm. I wonder why that bag isn't "Authenticity Guaranteed." I wonder whether it would have passed. Pictures are showing the condition or the details needed to prove authenticity.

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@albertabrightalberta 

I see the Authenticity Guarantee on the sold listing?

[albertabrightalberta]

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@penguins_dont_fly wrote:

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@albertabrightalberta wrote:

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According to the OP's completed listings, @tinaoffhempstead was the seller of a $1000 LV bag. 

ETA: Hmm. I wonder why that bag isn't "Authenticity Guaranteed." I wonder whether it would have passed. Pictures are showing the condition or the details needed to prove authenticity.

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@albertabrightalberta 

I see the Authenticity Guarantee on the sold listing?

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That's weird! I'm not seeing it! 

Not seeing it here either: 

[penguins_dont_fly]

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@frankenhobbit wrote:

I'm reading it as the OP's friend sold something for 2400, anticipates getting a 1099 and wants to issue the OP one to offset it so there is no tax payable. The OP is on SS and I guess earns too little to make it taxable?

Could be wrong, it's not very clear. But if I am right, that super no bueno. 

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@frankenhobbit 

You have it backwards. This was basically a consignment sale.  OP listed something that belonged to the friend and gave the friend the proceeds of the sale.

OP does not say if they got a percentage or not, but "as a favor" says to me that it was consignment with 100% of the net (after fees) paid to the friend.

Since the sale was under the OP's Tax ID (SS# or EIN), OP needs to issue a 1099-MISC to the friend.

This makes it an Expense for the OP and Income for the friend, duly reported to the IRS as such. The tax burden then falls on the friend (since they were the one that got the money).