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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29781
Experience:  Taxes, Immigration, Labor Relations
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I just started a little car dealership in California. Most

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I just started a little car dealership in California. Most of my competitors buy cars at auction (as do I). But i sometimes find better deals using private party. However do I need to 1099 a private party if I purchase a car from them? Or do I simply show a Bill of Sale? Thanks!


Hi and welcome to Just Answer!
There is no need to issue form 1099MISC to persons from whom you purchased cars.
Bill of Sale is sufficient document to proof the fact of purchase and the purchase price.
Be sure to have seller's information on file - name, address, tax ID (SSN) and proof of payment.

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