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consignment question
Posted By: Jason
I was thinking about consigning some items to Mastro in a future auction. My question is, do the auction houses (Mastro, Goodwin, etc) report their sales to the IRS by collecting your SS number at consignment time? or is it like Ebay where no SS number is ever involved and it is up to you to be honest and pay the piper if and when you make a profit (or take a loss) on any cards? |
#2
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consignment question
Posted By: leon
From my experience it's up to you to report your profit or loss. None of the auctions I know do it, that I am aware of. best regards |
#3
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consignment question
Posted By: barrysloate
I think a company like Sotheby's might, but none of the others that I know of do. I don't, and I leave it up to my consignors to take care of their own tax affairs. That is outside my domain. |
#4
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consignment question
Posted By: Josh Siegel
I think you cannot be touched at anything under $2000. If anyone would ever have you fill out any type of W-sheet or ask for a SS # they are not worth dealing with. I always leave it up to the seller or just send them checks in smaller amounts once a week if it is a large sum. I should also add that if the company would ever get audited, the gov't is primy to all of their records. That would include all of the consignors signed contracts and final statements. |
#5
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consignment question
Posted By: Ed Hans
I'm surprised to hear that auction houses are apparently not required to report to the IRS. The rule is that a 1099 for "non-employee compensation" be issued to any individual to whom payment of greater than $600 have been made. |
#6
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consignment question
Posted By: Anthony
I was pretty shocked not to get 1099'd as well. My accountant is adament about issuing them to anyone that is not a corporation that receives over $600. from my company. |
#7
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consignment question
Posted By: Larry
Hopefully someday soon the IRS stormtroopers will be out of business permanently. My cousin once worked for the IRS and she is too ashamed to even put it on her resume. The only thing worse than them is the ATF |
#8
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consignment question
Posted By: Bob C
Ed and Anthony are on target. Generally speaking, Form 1099MISC must be issued to U.S. individuals that receive awards, honorariums, payments and prizes in the calendar year that total $600 or more. |
#9
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consignment question
Posted By: Bill Todd
...but I believe that if you're being a strict constructionist then it's the consignor who should be issuing a 1099 to the auction house. After all, who's providing the service here? If your item hammers down for $10,000, and you've negotiated a 5% fee, then essentially you've just paid the auction house $500 for their services in preparing, marketing, and displaying the item. |
#10
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consignment question
Posted By: Anthony
Bill- it's my understanding (and I'm not a CPA, so will defer to Mr. Craik on this) that it is not required to issue 1099's to corporations, only individuals. As such Mastro, and probably others, would not be required to have any fees reported to the IRS. |
#11
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consignment question
Posted By: leon
I have a spreadsheet of all of the cards I buy during the year, where I bought them, and for how much. I then sell them and do the exact same thing. If I consign them it's the same as me sellling them, with an additional fee...which I will take out of the sales price (if that's the case). At the end of the year I add everything up, keep a copy, and my CPA uses a Schedule C to report them on my taxes.....it's really not that difficult.. I have a corporation too but treat these sales as 1099 type personal income...If any of this doesn't make sense then I will defer to my CPA...he's pretty good at this stuff......best regahds.... |
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