|
Posted by removeps-groups@yahoo.com on April 17, 2008, 3:27 pm
Please log in for more thread options
> >Unless they are in the improvements business, they don't need to have a
> >Schedule C and pay SE tax. Just put it on the 1040 under misc income.
>
> But how do they deduct the cost of materials from the $6K if
> they do not file a Schedule C?
Then they should file a Schedule C. Initially I thought they hired a
contractor whose cost of labor and materials was 6k, so they would
just report their 6k as Other Income. But if they bought 3k of
materials, and hired a contractor to do 2k of work, and themselves did
1k of work, then they should use a Schedule C which will end up
showing a profit of 1k, and SS and federal and state tax only on this
1k.
--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap