Payment for 2008 or 2009

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Subject Author Date Payment for 2008 or 2009 Rocky 12-31-2008  Re: Payment for 2008 or 2009 Paul Thomas, CPA 12-31-2008  Re: Payment for 2008 or 2009 wpatch 01-02-2009
Posted by Rocky on December 31, 2008, 1:59 pm Please log in for more thread options I get paid by a corp (1099 misc) and I use part of the payment to pay (1099 misc) 3 other subs. If I receive a check by mail from the corp on 1/2/2009 (but they include it on the 1099 misc that they send me), what year do I declare the tax for the payment? If 2008, can I pay my subs immediately after (obviously in 2009) and include those payments as 2008? If 2009, then the 1099 misc from the corp to me will be incorrect. Is that OK? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Paul Thomas, CPA on December 31, 2008, 2:49 pm Please log in for more thread options >I get paid by a corp (1099 misc) and I use part of the payment to pay > (1099 misc) 3 other subs. If I receive a check by mail from the corp > on 1/2/2009 (but they include it on the 1099 misc that they send me), > what year do I declare the tax for the payment? January 2nd isn't here yet, so this is just an example of course. For cash basis taxpayers, of which you might be, you report your income in the year received. > If 2008, can I pay my subs immediately after (obviously in 2009) and > include those payments as 2008? Why perpetuate this mess? I wouldn't do it. > If 2009, then the 1099 misc from the corp to me > will be incorrect. Is that OK? It is correct based on the client's books, which is how they must prepare their reports they send to the IRS. -- Paul A. Thomas, CPA Watkinsville, Georgia -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by wpatch on January 2, 2009, 11:38 am Please log in for more thread options > > If 2009, then the 1099 misc from the corp to me > > will be incorrect. Is that OK? > > It is correct based on the client's books, which is how they must prepare > their reports they send to the IRS. Two notes, 1. If 2009 income reported in 2008 exceeds your 2008 reported income in that category, you sould report that (the mismatch not the income)on your 2008 return, or you will receive a correction request from IRS for your return based on the matched 1099's. 2. If the client is related to the supplier(same rules for relatedness as wash sales), they may not recognize expenses for tax purposes in a period prior to which the supplier reports the related income. Bill Patch Hilliard OH -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Claiming stimulus payment on 2008 return? December 17, 2008, 6:50 pm First time homebuyer Credit 2008 -2009 March 6, 2009, 1:18 pm 2008 stimulus ... 2009 home purchase August 27, 2009, 4:17 pm Re: Using 2008 overpayment for 2009 estimated tax with filing extension? March 24, 2009, 7:58 am Worker, Retiree, and Employer Recovery Act of 2008 (H.R. 7327) re: RMDs for age 70-1/2 in 2009 December 24, 2008, 4:38 pm Will "Allowance against Alternative Minimum Tax" in the Emergency Economic Stabilization Act of 2008 apply to 2008 credit carry forwards October 7, 2008, 12:30 pm Re: No MRD for 2009 December 30, 2008, 11:49 pm Postpone Payment... January 5, 2007, 8:06 am Stimulus payment March 1, 2008, 6:06 pm Estimated tax payment. April 12, 2008, 4:59 pm