To provide a 1099 or not to provide… That is the question.
Let’s clarify a few things.
If you paid someone for services, such as paying commission for items he/she sold for you, shoveling your sidewalk, or preparing your payroll, etc., then you are required to issue a 1099-Misc to that person, provided you paid him/her more than $600 in a year and made the payments to an individual and not to a corporation.
If you paid someone for any type of product or merchandise, you do NOT issue a 1099; 1099s are for service only. This includes items sold on consignment.
How you report the expense on your tax return is not affected by whether or not you issue a 1099-MISC. You report it the same way.
In summary, you issue a 1099-MISC only for payments for services, not for merchandise. So if you buy merchandise from someone, you do not issue a 1099-MISC, no matter how much you paid.