Tax guys chime in

Discussion in 'The Okie Corral' started by srhoades, Feb 4, 2013.

  1. srhoades

    srhoades

    Messages:
    2,818
    Likes Received:
    23
    Joined:
    Jul 14, 2000
    I'm a self employed computer consultant. I do a fair amount a work as a sub-contractor and get a 10-99 each year, no big deal. However I did some work for another customer that also required them to send a 10-99. His 10-99 that he sent included everything I billed him, labor and materials. Previously the 10-99's I have received were labor only. So what should be reported on a 10-99?


    Posted using Outdoor Hub Campfire
     
  2. jpa

    jpa CLM

    Messages:
    8,024
    Likes Received:
    135
    Joined:
    May 28, 2001
    Location:
    Las Vegas NV
    http://www.irs.gov/instructions/i1099msc/ar02.html

    File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year:

    At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;

    of course you're going to deduct the amount you paid for those parts and materials as business expenses when calculating your taxes....
     
    Last edited: Feb 4, 2013

  3. srhoades

    srhoades

    Messages:
    2,818
    Likes Received:
    23
    Joined:
    Jul 14, 2000
  4. lavon_andy

    lavon_andy

    Messages:
    127
    Likes Received:
    0
    Joined:
    Feb 2, 2013
    Any money he pays you will be lumped into the 1099

    Unless you set it up before hand where he buys the materials; and then just pays you labor.

    Either way it is a wash if done correctly, he pays you labor + materials, you claim income deduct materials, he pays you labor and he buys materials, you claim income and he deducts materials.