1099 Help

[hapinetworks]

What is the name of your state (only U.S. law)? California


I am starting up a business in what can be classified as a Sharing Economy business in which customers pay for the use of other customers' personal property, in the way that AirBnB operates, sort of. We will have to pay these customers a percentage of the earnings, and I am wondering which form we have to file and provide to them. Is it the 1099-K or the 1099 MISC? Some "sharing" companies issue the 1099-K, such as Uber and AirBnB, but the 1099 MISC seems more suited to pay "subcontractors" even though subcontractors, such as in my business' case as well as AirBnB's don't actually do any work. Any advice? Thank you.

 

[Zigner]

What is the name of your state (only U.S. law)? California


I am starting up a business in what can be classified as a Sharing Economy business in which customers pay for the use of other customers' personal property, in the way that AirBnB operates, sort of. We will have to pay these customers a percentage of the earnings, and I am wondering which form we have to file and provide to them. Is it the 1099-K or the 1099 MISC? Some "sharing" companies issue the 1099-K, such as Uber and AirBnB, but the 1099 MISC seems more suited to pay "subcontractors" even though subcontractors, such as in my business' case as well as AirBnB's don't actually do any work. Any advice? Thank you.

I would suggest that you sit down with a business tax pro and discuss your business. I would also suggest a sit-down with a business attorney and an insurance agent.

 

[FlyingRon]

Barter is still income. You go over $600 in value, you will likely have to 1099 them. You should talk to a tax advisor.

 

[LdiJ]

What is the name of your state (only U.S. law)? California


I am starting up a business in what can be classified as a Sharing Economy business in which customers pay for the use of other customers' personal property, in the way that AirBnB operates, sort of. We will have to pay these customers a percentage of the earnings, and I am wondering which form we have to file and provide to them. Is it the 1099-K or the 1099 MISC? Some "sharing" companies issue the 1099-K, such as Uber and AirBnB, but the 1099 MISC seems more suited to pay "subcontractors" even though subcontractors, such as in my business' case as well as AirBnB's don't actually do any work. Any advice? Thank you.

Also, Uber and Airbnb do not "use" 1099 K. 1099 Ks are used by credit card companies to report money received by credit card. Uber driver's get a 1099K from the credit card company AND a 1099-Misc from Uber.