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Posted by Mike Wellman on February 18, 2007, 9:32 pm
Please log in for more thread options > frank1492 wrote:
>> The IRS info is very confusing on this point. This person
>> received compensation of about $3000 for office painting
>> (not a part of his regular job) at the business at which he
>> was employed. The employer reported this on a 1099-Misc Form
>> as "non-employee compensation."
>>
>> Does this properly belong on Schedule C? (The IRS seems to
>> suggest that it should be even though he is not technically
>> self-employed and does not seem to operate a "sole
>> proprietorship.")I have no idea what to include, and what is
>> the "principal business?" The office girl says to put the
>> name of the business there and then put the person's home
>> address in the address area. That doesn't seem right at all!
>>
>> I would not expect this activity to recur, but other
>> "chores" for pay are possible sporadically over time at the
>> company.
>>
>> Please explain what lines should be included. I expect most
>> of Schedule C would be left blank.
> Employer handled everything properly =A0(apologies to Mike
> Wellman). An mainline employee, 40 hours a week, regular
> paid guy, gets a W2 for his "day job". =A0 But he could be a
> self employed painter for anybody, including his regular
> employer.
>
> Use a schedule c. =A0principal business is "construction -
> painting", and name of business is "self", =A0and address is
> home address.
>
> If employer didn't furnish all the supplies, don't forget to
> deduct any of those on the schedule c.
As I stated in my initial post, the taxpayer "could" have
been considered a self-employed painter and a 1099 would
have been appropriate. However, the facts made it very clear
that was not the case. Try walking these facts through form
SS-8 and see how far you get.
I could envision the employee being asked to perform other
"chores" to quote the poster, such as counting inventory at
year end or helping move the employer from one office to
another. So under your theory, the employer would issue a
1099 for those discreet tasks and the employee would file a
Schedule C for each, showing the type business as "Inventory
Counter" and "Office Mover".
I respectfully disagree.
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