Posted by Dave H (MI) on January 27, 2015 at 11:01:44 from (50.108.67.173):
In Reply to: strange 1099 question posted by fixerupper on January 27, 2015 at 10:01:37:
They are wrong, 1099 should not be issued. Even using the "doctrine of constructive receipt", you have not been paid nor do you have the option of getting paid. Problem is that by February 28 the 1099 copies for the IRS will have been filed. Once the IRS has it, you better show it on your tax return. I would not ask them to correct it, because you will never know if they did it or not or did it correctly.
Where you show it is going to depend on what kind of 1099 it is...and there are several kinds. IF you were a client here, I can tell you that I would listen to the story and give you two options. One is that you pay any tax due now, two is that you pay tax in the year you get the money. Option one is self explanatory. Option two will require a deduction of some sort to reduce the 1099 amount to zero. This can be done with an expense write off or with a basis adjustment, depending on the 1099. Your preparer can legally do this if they have a sound rationale for the action...and I just gave you one. In the year you collect the funds, add the taxable amount onto your tax return in the appropriate place. This is how I would handle it. Easiest and simplest route though....option one.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - A Belt Pulley? Really Doing Something? - by Chris Pratt. Belt Pulleys! Most of us conjure up a picture of a massive thresher with a wide belt lazily arching to a tractor 35 feet away throwing a cloud of dust, straw and grain, and while nostalgic, not too practical a method of using our tractors. While this may have been the bread and butter of the belt work in the past (since this is what made the money on many farms), the smaller tasks may have been and still can be its real claim to fame. The thresher would bring in the harvest (and income) once a y
... [Read Article]
Latest Ad:
1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
