[Jewelry making - Article 00011] - Re: [Orchid] Consignment and taxes

[Kimberly Starbard]

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>     I am a bit wary of giving out my social security number in view of
>     all the identity thefts. Also, the 1099 form sounds peculiar to me
>     too. I thought that these were for salary earned---not for sale of
>     consigned pieces, but I am not a tax expert. 

    You have a valid concern here. The only ways I know of to get around
    it are to either not consign...deal only with galleries who will buy
    your work outright or register for a Federal Employer Identification
    Number. Here is a link 

    http://tinyurl.com/89mum 

    to an Acrobat file on www.irs.gov. I got my information from page
    Gen 9 under 2005 1099 instructions-All. 

    As you deal with more galleries you probably will find that most
    don't scramble to get EINs and SSNs in the month of January, they get
    them when they bring you on board. They may not deal with you if you
    are not willing to provide your numbers. 

    A side note, there are too many different reasons for 1099s to list.
    I won some money on the local lottery years ago...they issued a 1099
    on the spot. People get 1099-DIVs every year from their bank or
    mortgage company for any interest paid to them. 1099s are just a fact
    of life 

    The 1099 that you will receive from the gallery will be a 1099-MISC. 

    Good luck and the usual disclaimer....nothing takes the place of a
    qualified CPA

Kim Starbard
Cove Beads

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