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Question

I have a local ticket sales website. Programs and individuals bring their friends, family, etc...to the site and purchase event tickets here. I would like to pay (donate) these people and programs a percentage of the ticket proceed for generating the traffic and purchasing their tickets on my site. What are the tax implications for my site & for the receivers of the donation, once the transaction has been made?

Submitted: 47 days and 11 hours ago.
Category: Tax
Value: $15
Status: CLOSED
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State/Country relating to question: Oregon

Already Tried:
I just thought of this scenario.

Accepted Answer

Hello Adonis,

Basically you would be paying these people a commission and this would be taxable income for the people receiving the commissions. At the same time it would be a business tax deduction for you.

If you pay any one individual more than $600 during the year, then at the end of the year you would need to issue that person a 1099-MISC form to report the total amount you paid to that person. If the amount is below $600 for the year, then you do not need to file this form.

The person receiving the commssions would be responsible for reporting the income on their own tax returns.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you Adonis and let me know if you have more questions.

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Expert: Merlo
Pos. Feedback: 99.8 %
Accepts: 
Answered: 10/6/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad

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