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Hi, I run a booth at a local faire for 2 months a year. I have…

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Hi, I run a booth...
Hi, I run a booth at a local faire for 2 months a year. I have a few artists who sell their wares at our booth and are charged 25% as a fee. I collect all the payments and cut them a check for 75% of the total. What am I obligated to file tax wise?
Submitted: 5 years ago.Category: Tax
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12/3/2012
Tax Professional: Richard, Tax Attorney replied 5 years ago
Richard
Richard, Tax Attorney
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Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good evening. The best way to report this would be report this on Schedule C to your Form 1040. On Schedule C, you would include all the revenue and then reduce that by the 75% paid to the artists. The result would then be that the 25% net that you retain would be carried over to the first page of your Form 1040.



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Tax Professional: Richard, Tax Attorney replied 5 years ago
One other thing I should mention: You will also want to issue a 1099MISC for over $600 in payments to your artists.
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Tax Professional: Richard, Tax Attorney replied 5 years ago


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