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How to handle 1099-K for business
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johnm...@yahoo.com
Apr 11, 2012, 6:51:31 PM4/11/12
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Our company used the Groupon web site to run a promotion. Groupon
advertised our company, billed the customers, and sent us a commission
check equal to 48% of the billed credit cards.
I got a 1099-K form from Groupon. The thing is the 1099-K shows the
grand total that Groupon collected. But they only paid us 48% of that.
If I send the 1099-K in with our tax return is the IRS going to think
we earned the full grand total? How do I show that we only got 48% of
that?
--
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advertised our company, billed the customers, and sent us a commission
check equal to 48% of the billed credit cards.
I got a 1099-K form from Groupon. The thing is the 1099-K shows the
grand total that Groupon collected. But they only paid us 48% of that.
If I send the 1099-K in with our tax return is the IRS going to think
we earned the full grand total? How do I show that we only got 48% of
that?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
Rich Carreiro
Apr 11, 2012, 7:41:31 PM4/11/12
to
"johnm...@yahoo.com" <johnm...@yahoo.com> writes:
> Our company used the Groupon web site to run a promotion. Groupon
> advertised our company, billed the customers, and sent us a commission
> check equal to 48% of the billed credit cards.
>
> I got a 1099-K form from Groupon. The thing is the 1099-K shows the
> grand total that Groupon collected. But they only paid us 48% of that.
> If I send the 1099-K in with our tax return is the IRS going to think
> we earned the full grand total? How do I show that we only got 48% of
> that?
Show the 52% that Groupon got as a marketing expense, or an
> Our company used the Groupon web site to run a promotion. Groupon
> advertised our company, billed the customers, and sent us a commission
> check equal to 48% of the billed credit cards.
>
> I got a 1099-K form from Groupon. The thing is the 1099-K shows the
> grand total that Groupon collected. But they only paid us 48% of that.
> If I send the 1099-K in with our tax return is the IRS going to think
> we earned the full grand total? How do I show that we only got 48% of
> that?
advertisement expense, or as a promotion expense. That's
clearly what it is, after all.
--
Rich Carreiro rlc-...@rlcarr.com
Gene E. Utterback, EA, ABA
May 2, 2012, 10:58:59 AM5/2/12
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wrote in message
news:c46454e2-cfb8-4f1c...@36g2000yqi.googlegroups.com...
Our company used the Groupon web site to run a promotion. Groupon
advertised our company, billed the customers, and sent us a commission
check equal to 48% of the billed credit cards.
I got a 1099-K form from Groupon. The thing is the 1099-K shows the
grand total that Groupon collected. But they only paid us 48% of that.
If I send the 1099-K in with our tax return is the IRS going to think
we earned the full grand total? How do I show that we only got 48% of
that?
--
<< ------------------------------------------------------- >>
Rich is quite correct. Your company did earn 100% of the sales made, and
also spent 52% of those sales on a deductible expense of some sort. Could
be marketing or advertising or maybe even credit processing fees.
You should report ALL the income as your income, then deduct the 52%.
Gene E. Utterback, EA, RFC, ABE
news:c46454e2-cfb8-4f1c...@36g2000yqi.googlegroups.com...
Our company used the Groupon web site to run a promotion. Groupon
advertised our company, billed the customers, and sent us a commission
check equal to 48% of the billed credit cards.
I got a 1099-K form from Groupon. The thing is the 1099-K shows the
grand total that Groupon collected. But they only paid us 48% of that.
If I send the 1099-K in with our tax return is the IRS going to think
we earned the full grand total? How do I show that we only got 48% of
that?
--
<< ------------------------------------------------------- >>
also spent 52% of those sales on a deductible expense of some sort. Could
be marketing or advertising or maybe even credit processing fees.
You should report ALL the income as your income, then deduct the 52%.
Gene E. Utterback, EA, RFC, ABE
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