lodging for work

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Subject Author Date lodging for work Marion1E 01-21-2009  Re: lodging for work Alan 01-21-2009  Re: lodging for work Harlan Lunsford 01-21-2009  Re: lodging for work Stuart A. Bronstein 01-21-2009  Re: lodging for work Harlan Lunsford 01-21-2009  Re: lodging for work Dick Adams 01-22-2009  Re: lodging for work Stuart A. Bronstein 01-21-2009
Posted by Marion1E on January 21, 2009, 3:14 pm Please log in for more thread options Hi everybody, My friend lives in an apartment complex. He does maintenance work and in return gets to live there for free. I think this is considered income. He said he never got any form that shows any earnings. Am I correct? Like always thank for your wisdom, Marion Albuquerque, NM -- << ------------------------------------------------------- >> << 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 Alan on January 21, 2009, 3:50 pm Please log in for more thread options Marion1E@comcast.net wrote: > Hi everybody, > My friend lives in an apartment complex. He does maintenance work and > in return gets to live there for free. I think this is considered > income. He said he never got any form that shows any earnings. Am I > correct? > > Like always thank for your wisdom, > > Marion > Albuquerque, NM > I believe this falls under an exchange of services within the normal course of business. (See below for an exception.) You work for me as a maintenance person and I pay you by letting you live rent free in one of my apartments. The payment is the fair rental value (FRV) of the apartment. The apt manager would be obligated to issue a 1099-MISC with the FRV in Box 7 as nonemployee compensation if the annual amount is at least $600. How often is the 1099-misc issued... my experience in CA & NM leads me to believe.... not very often! There is an exception to this rule. If the management company requires the worker to reside on the premises, there is no income to report. A recent thread on this newsgroup highlighted the exception for resident advisers at a college. They are required to be resident on the premises. -- << ------------------------------------------------------- >> << 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 Harlan Lunsford on January 21, 2009, 5:23 pm Please log in for more thread options Alan wrote: > Marion1E@comcast.net wrote: >> Hi everybody, >> My friend lives in an apartment complex. He does maintenance work and >> in return gets to live there for free. I think this is considered >> income. He said he never got any form that shows any earnings. Am I >> correct? >> >> Like always thank for your wisdom, >> >> Marion >> Albuquerque, NM >> > I believe this falls under an exchange of services within the normal > course of business. (See below for an exception.) You work for me as a > maintenance person and I pay you by letting you live rent free in one of > my apartments. The payment is the fair rental value (FRV) of the > apartment. The apt manager would be obligated to issue a 1099-MISC with > the FRV in Box 7 as nonemployee compensation if the annual amount is at > least $600. > > How often is the 1099-misc issued... my experience in CA & NM leads me > to believe.... not very often! > > There is an exception to this rule. If the management company requires > the worker to reside on the premises, there is no income to report. A > recent thread on this newsgroup highlighted the exception for resident > advisers at a college. They are required to be resident on the premises. > IF this fellow were an employee of the apartment complex, i.e. getting a wage and working for them full time, then free lodging could be for the convenience of the employer, since he would have to be on call to fix things. But such an arrangement as this, he is not an employee, and therefore an independent contractor and should be getting a 1099misc. ChEAr$, Harlan Lunsford, EA n LA -- << ------------------------------------------------------- >> << 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 Stuart A. Bronstein on January 21, 2009, 6:45 pm Please log in for more thread options > IF this fellow were an employee of the apartment complex, i.e. > getting a wage and working for them full time, then free lodging > could be for the convenience of the employer, since he would have > to be on call to fix things. > > But such an arrangement as this, he is not an employee, and > therefore an independent contractor and should be getting a > 1099misc. Why wouldn't he be an employee? The employer provides the place to work and perhaps the tools. The employer tells him when and where to work, and perhaps even how. Seems like an employee to me, even though he gets no cash wages. Stu -- << ------------------------------------------------------- >> << 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 Harlan Lunsford on January 21, 2009, 8:17 pm Please log in for more thread options Stuart A. Bronstein wrote: > >> IF this fellow were an employee of the apartment complex, i.e. >> getting a wage and working for them full time, then free lodging >> could be for the convenience of the employer, since he would have >> to be on call to fix things. >> >> But such an arrangement as this, he is not an employee, and >> therefore an independent contractor and should be getting a >> 1099misc. > > Why wouldn't he be an employee? The employer provides the place to > work and perhaps the tools. The employer tells him when and where to > work, and perhaps even how. Seems like an employee to me, even though > he gets no cash wages. Granted, we could probably use some more data on the situation, like does the fellow have a regular job elsewhere? That was the impression if got. After all, he does maintenance work and gets an apartment in return. How does he pay other expenses? One of my clients, a state employee with a good salary, lives in a cottage rent free at a lake community, in return for which he serves as owner's rep in providing eyes and ears for the owner. He's not an employee and doesn't get a 1099 either. ChEAr$, Harlan Lunsford, EA n LA -- << ------------------------------------------------------- >> << 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 Lodging deduction question September 18, 2008, 8:02 pm Medical expenses, lodging and travel January 4, 2007, 9:13 pm Calif. renter's credit vs. employer lodging February 21, 2009, 10:51 pm how does IRA recharacterization tax work? 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