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Old 01-28-2009, 11:51 PM
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Help with income question

Hi~I contracted with my uncle to take care of some rental property.I was unable to do it and let my mother do it so she could have the money. My uncle paid me and I wrote my mother a check for the exact amount he gave me. Therefore, I did not profit at all. What do I need to do if he gives me a 1099 misc? What tax forms will I have to fill out and give my mother and include with my taxes? Thanks



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Old 01-29-2009, 01:40 AM
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If you receive a 1099-Misc form from your Uncle, you would file a Schedule C-Ez and simply show an expense equal to the amount you paid to your Mother. Hence, you would not be subject to any taxes on the 1099-Misc.

Additionally, you should perhaps your consult with your Tax advisor or CPA to determine whether or not you should also prepare a 1099-Misc to be issued to your Mother. I suspect that he or she may actually suggest that you prepare a Form 1096 and a 1099-Misc (both red copies) to be sent to the IRS. At least that would be my recommendation!

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