another spin


another spin

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Subject

Author

Date

another spin

Harlan Lunsford

04-18-2008

D. Stussy

William Brenner

Dick Adams

Seth

Posted by Harlan Lunsford on April 18, 2008, 4:28 pm

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Victor Roberts wrote:

> Here's a tax question posed to me by my son regarding some

> of his friends.

> Tenants of a rental property improve the property. The cost

> of labor plus materials is $6000. Their landlord pays them

> for the improvements by forgiving $6000 in rent payments.

> The landlord issues a 1099-MISC for the $6000 cost of the

> improvements to the tenants.

(balance snipped as non relevant.

So to put a different spin on things. Let's say the landlord rents
only to nice looking women, and he doesn't need the income, and
all his tenants are struggling to make ends meet, and.... well, you
get the point.

Furthermore, to settle up the monthly rentals, tenants individually
(or collectively; so much funner!) provide certain services in exchange
therefore.

Question: who issues what 1099's to whom? and is it box 3 or box 7?

ChEAr$,
Harlan
LOL!

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Posted by D. Stussy on April 18, 2008, 5:31 pm

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> Victor Roberts wrote:

> > Here's a tax question posed to me by my son regarding some

> > of his friends.

> >

> > Tenants of a rental property improve the property. The cost

> > of labor plus materials is $6000. Their landlord pays them

> > for the improvements by forgiving $6000 in rent payments.

> > The landlord issues a 1099-MISC for the $6000 cost of the

> > improvements to the tenants.

> >

> (balance snipped as non relevant.

> So to put a different spin on things. Let's say the landlord rents

> only to nice looking women, and he doesn't need the income, and

> all his tenants are struggling to make ends meet, and.... well, you

> get the point.

> Furthermore, to settle up the monthly rentals, tenants individually

> (or collectively; so much funner!) provide certain services in exchange

> therefore.

> Question: who issues what 1099's to whom? and is it box 3 or box 7?

Don't bait Mr. Adams.

I originally thought about using his first name in the above line, but
decided against the pun.

--
<< ------------------------------------------------------- >>
<< 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 William Brenner on April 18, 2008, 8:37 pm

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Harlan Lunsford wrote:

> Victor Roberts wrote:

>> Here's a tax question posed to me by my son regarding some

>> of his friends.

>> Tenants of a rental property improve the property. The cost

>> of labor plus materials is $6000. Their landlord pays them

>> for the improvements by forgiving $6000 in rent payments.

>> The landlord issues a 1099-MISC for the $6000 cost of the

>> improvements to the tenants.

> (balance snipped as non relevant.

> So to put a different spin on things. Let's say the landlord rents

> only to nice looking women, and he doesn't need the income, and

> all his tenants are struggling to make ends meet, and.... well, you

> get the point.

> Furthermore, to settle up the monthly rentals, tenants individually

> (or collectively; so much funner!) provide certain services in exchange

> therefore.

> Question: who issues what 1099's to whom? and is it box 3 or box 7?

> ChEAr$,

> Harlan

> LOL!

Would this arrangement not be considered a barter and theoretically be
subject to tax treatment accordingly? If so, would it not confer a
state of "professionalism" upon the women?

The likelihood of it being reported or 1099s being issued is about equal
to that of the above questioner subscribing to the 'New York Times'.

Bill

--
<< ------------------------------------------------------- >>
<< 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 Dick Adams on April 19, 2008, 9:30 am

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> Harlan Lunsford wrote:

>> So to put a different spin on things. Let's say the landlord rents

>> only to nice looking women, and he doesn't need the income, and

>> all his tenants are struggling to make ends meet, and.... well, you

>> get the point.

>> Furthermore, to settle up the monthly rentals, tenants individually

>> (or collectively; so much funner!) provide certain services in exchange

>> therefore.

>> Question: who issues what 1099's to whom? and is it box 3 or box 7?

> Would this arrangement not be considered a barter and theoretically be

> subject to tax treatment accordingly? If so, would it not confer a

> state of "professionalism" upon the women?

Technically, you normally need more than one client to
be considered a professional.

> The likelihood of it being reported or 1099s being issued

> is about equal to that of the above questioner subscribing

> to the 'New York Times'.

It is against public policy to business deductions for
expenses paid for meritricious relationships. So the
landlord would have non-deductible personal expenses.

Since he has no rental income, he has no rental deductions
and no depreciation. Talk about getting scr##w#&!

OTOH We should take up a collection and purchase a 3-year
subscription to the Noo Yawk Times for you-know-who. LoL

Dick

--
<< ------------------------------------------------------- >>
<< 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 Seth on April 23, 2008, 9:31 am

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>> Would this arrangement not be considered a barter and theoretically be

>> subject to tax treatment accordingly? If so, would it not confer a

>> state of "professionalism" upon the women?

>Technically, you normally need more than one client to

>be considered a professional.

Exclusive contracts are not at all unusual in many professions.

>Since he has no rental income, he has no rental deductions

>and no depreciation. Talk about getting scr##w#&!

And no depreciation recapture (at 25%) when he sells, so maybe not so
screwed (the bad way).

Seth

--
<< ------------------------------------------------------- >>
<< 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
Spin Off	April 12, 2007, 12:25 am

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