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Preparing a 1099-Misc / Commissions to owner of equipment


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Posted

Hoping someone knows this one right off the old cuff. If not, I'll research more. Much obliged.


I have a Sch C filer, rents equipment from AND also pays a % of gross sales to equipment owner.

I know that the rent paid belongs in Box 1. I THINK the commission paid belongs in Box 3. Is that correct?

Posted

Sounds to me like it is all rent for the use of the equipment unless the equipment owner is providing some other service for your Schedule C guy.

That's actually what I was wondering, if would all be considered rent, but I was too chicken to say it.

Posted

If he provides services, runs the equipment or whatever, then Box 7 for the percentage. If not, then maybe it's all rent. What industry is he in? Maybe someone is familiar with the usual procedure for that industry....

Posted

If he provides services, runs the equipment or whatever, then Box 7 for the percentage. If not, then maybe it's all rent. What industry is he in? Maybe someone is familiar with the usual procedure for that industry....

The equipment is an ice vending machine. The owner provides no services.

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