I owned a utility bed truck in my personal name and not in my business name. I sold it to a city and was 1099'd for miscellaneous income (Box 7) under my personal S.S. #. I do not think this is personal income to me. I bought the truck at a price with money I earned and then sold it. This was not for services performed for the city. Does anyone have an answer as to what I should do? I don't want to pay income tax on this.

The 1099-MISC form is used to report direct sales of over $5k in consumer product as it is purchased by the city for non-retail sales. When you get a 1099-MISC, remember that the government gets a copy, too, so you can't ignore it you could set up a sch C and make sort like a 1-day company to handle this transaction.and then somehow justify the cost basis in the sch C; getting a 1099 was completely wrong for this type of transaction and box 7 is for services such as labor provided, not a used car sale. y ou may ask the city to correct the transaction.