Marketplace Income Rules

How do I accurately report income between buyers/sellers?

I’ve built a marketplace app similar to AirBNB.

Here is the flow of money…

  1. When buyers book a house, we authorize a total charge (cost + our fee) via Stripe.
  2. When the host accepts, we charge the buyers card, but we hold on to the money until the date of stay.
  3. After stay, we transfer money to host (minus our host fee.)

My questions are:

  • Do we have to provide 1099 to hosts? What do we provide buyers at end of year?
  • How can I tell Stripe what fees we are collecting? We can authorize a charge, capture charge, and transfer funds at a later date no problem using the Stripe Marketplace app. It only asks us our fee if we transfer money at time of capture, but we don’t want to transfer until fulfillment.
  • We we’re hoping to use Stripes built in 1099 for sellers, but if we can’t solve fee problem… is it better just to generate 1099 for our sellers in Bubble?

Anybody dealt with these things before? How you do your marketplace?

(@boston85719 tagging you cuz you seek to have alot of Stripe content on Forum. Any insight?)

This is hardly a bubble related problem :stuck_out_tongue:

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I agree :grinning:

I’d ask your local tax professional these questions.

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Sorry guys, I tried to be honest in title language.

I thought it was Bubble related since A) it’s possible I am missing some way of sending fee amounts to Stripe from Bubble and B) If I need to generate 1099 within Bubble wasn’t sure if there is PDF plug-in or something to use?

Plus, since so many people on Bubble want to build marketplaces… isn’t this relevant parallel topic? Should I change topic category to something else?

You can render PDFs with a HTML element (use the src=“link_of_hosted_PDF” attribute) – you just need to find a place to host them (just type “host PDFs” on Google).

You can also store a blank 1099 file in your database (probably as a field in an option set), and send it out to hosts when they’re receiving $, or creating an account.

I’m not at all familiar with the Stripe built-in 1099, but I think it’s a little redundant to be using an API call for a blank file :slight_smile:

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Since I am paying Stripe Fees for processing payments, I leverage all of Stripe features. This includes their 1099.

When performing the API calls you indicate the fee collected by the application. An API call for transfer is needed to transfer.

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