I very own a consignment shop. Ns am make the efforts to number out if I need to insurance claim money owed to consignors as income, or if it"s excluded due to the fact that it"s technically no my money.For example, I sell a purse because that $100. $50 goes to me (the store), $50 goes come the consignor. Perform I, the store, claim $100 income, or just $50 income? What if the consignor never collects your $50 and also it"s just sitting in an account waiting for them?


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You only should count your part of the money. In your example above, that would certainly be the $50.Here is your answer straight from the IRS:Revenue for consignment stores comes in the form of commissions or fees fee from the marketing price before giving the seller her share. Because that example, a consignment shop that charges a 30 percent commission can list an item for $100. Once that item sells, the keep keeps $30 and pays $70 come the seller. The keep reports only the $30 on its taxes, fairly than reporting $100 in revenue and $70 in perform expense.You do not count any kind of money in an account because that someone else uneven you have actually a policy that the is forfeited after ~ a certain time and becomes yours. If the is the case, it is earnings to you.
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TuboTaxJulieH1: would you be kind and carry out a attach to the IRS resource for her answer? I"m no disagreeing, however want to have actually record of why I"ve accounting the way I have. If I"m audited, ns don"t want to speak "I read about it on a TurboTax post...
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