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Reselling foreign software licenses
February 13, 2023
Q. If a US business purchases apps or one-time software licenses from foreign suppliers that are then resold to US-based customers, is that considered as Other Income reportable on a 1042-S? Is that considered essentially royalties--even if it's one-time basis or as-needed basis?In the same situation, if the supplier was US-based, is anything reportable on 1099s since it's resold (assuming all other 1099 variables are met)?
A.
(Answered by IOFM's third-party tax experts)
The payer would need to…
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