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Tax Law (Questions About Taxes)/1099 -product vs service?

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Anoelg wrote at 2015-01-25 01:42:15
If you altered the original product per customer's specifications  you are adding value hence providing service.  Walmart, Home Depot resell merchandise without altering its shape or any other characteristics.   That is the main difference between reselling a product with a retail markup and providing service in case of which you make money by altering the original good/material.  Hope this helps.  


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Randall Klein, MBA, EA

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I am an expert in personal and small business taxation, including Forms 1040, 1120, 1120S, 1065. I can answer any type of tax question except those that are requesting help in illegal tax evasion. Tax avoidance is legal, however. I do not do offshore trusts, or opt-out of the tax system type of queries.

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