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Posted by hlunsford@bellsouth.net on June 29, 2006, 12:15 am
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felix wrote:
> I participated in a usability study at Microsoft. They gave
> me a piece of software as gratuity. They have mailed me a
> 1099-MISC form that has the gift (listed as "other income")
> worth $799.00.
>
> I did not open the gift, I instead sold it on ebay for
> $350.00.
>
> I would like to pay taxes only on the $350.00 (which is what
> I believe the software is really worth anyway).
>
> Since the IRS knows I "made $799.00", how do I remedy this
> when I file my taxes?
>
> My guess (but I know little about taxes) is to:
>
> 1. fill out $799.00 on the 1099-MISC form.
> 2. Fill out a Schedule C that lists a loss (under "Other
> Exp.") of $449.
Do not report on schedule c unless you're in business and
this was business related.
However, even though it may not have had a street value of
799, it's value may have been more than the 350 you actually
got. Notice I said "street value"? Check the web and
stores to find the rock bottom "street" price and report
that on your 1040.
ChEAr$,
Harlan Lunsford, EA n LA
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