[Jewelry making - Article 00019] - Re: [Orchid] Consignment and taxes

[Dennis Loss]

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    It is typical of some stores to run 1099 for merchandise they sell
    on consignment. Really, they are in a way saying that you are working
    for them, which of course you aren't. I had a couple of companies do
    this to me in the past. It can make it harder I think for you to do
    your taxes because it looks more like gross income when it is
    actually gross receipts. You can still do the paper work to show your
    expenses. You should talk with them and ask them why they are doing
    this, they may have a reason but... It would be better if they
    recorded your sales as merchandise sold and the payment to you as a
    purchase of that merchandise sold. They might not want to do this
    because it may have a different tax structure when it comes to
    inventory in their store. Who can say? 

Dennis

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