Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-24-2010, 11:36 PM
Junior Member
 
Join Date: Jan 2010
Location: Austin, TX
Posts: 2
Sole proprietor issue 1099-misc to a TX c-corp

I am assisting a friend (sole proprietor) prepare her taxes. She used an individual who is incorprated and paid $20K for a project. Does she issue a 1099-misc for non-employee compensation and if not, how would she handle this expense?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-25-2010, 10:48 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
Per the IRS instructions on 1099-Misc reporting instructions, "Payments for which a Form 1099-MISC is not required (generally) include payments to a corporation." Thus, per the Tax law you are not required to report any 1099-Misc income paid to an individual who is incorporated and no action is required by your friend.

That individual who receives the payments in the name of his or her corporation would report the income upon filing the corporation tax return! As for your friend, the expense would be reportable in a category called "Outside Services" on your friends Schedule C.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 01-25-2010, 12:44 PM
Junior Member
 
Join Date: Jan 2010
Location: Austin, TX
Posts: 2
Thank You Very Much!

Thanks for the information. It is greatly appreciated.


Last edited by TaxGuru : 01-25-2010 at 08:51 PM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Client Wants to Issue 1099-MISC - Need Help! hcunited Income 3 02-02-2009 01:42 PM
Help with New Sole Proprietor tax deductions kss2703 Sole-Proprietorship 2 01-30-2009 10:22 PM
What's the IRS minimum compensation amount needed to issue a 1099-Misc in 2007? bpcombs Miscellaneous 1 08-29-2008 04:57 AM
Help With 1099 Sole Proprietor Tax Deductions and Record Keeping Keezee Income 1 09-28-2007 09:22 AM
S Corp conversion to Sole Proprietor Marshall S-Corporation 1 09-27-2007 09:26 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.