House sale Deposit non-refunded - need to send 1099 ?

#2 02-06-2004, 11:14 AM

bobby wrote:
- quote -

> Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
> > bobby wrote:

> > > I attempted to buy a house in 2003. As part of the sale
> > > agreement, I gave a depost of $5000.00 to the seller of the
> > > property. Becuase of the delay in closing, I backed out of
> > > the deal. The seller refused to refund any part of the
> > > deposit, even though he sold the property immeditately to
> > > another buyer.
> > > > > My question is do I need to send him a 1099 for the deposit
> > > withheld by him ?

> > 1099's are only sent from you if you are in a trade or
> > business, AND this was in connetion therewith. This
> > seems to be a personal transaction, hence no 1099.
> > > I know; you want to get to him; right?

> Thanks for the reply. Yes, I want him to at least pay taxes
> on what he took from me.
> anyways, the check I gave him was from a company I own. So
> I'm examining the possibilty that it can be considered a
> business transaction.

Even if you did have his data, this wouldn't pass muster,
just becuase you used a business account check for a
personal purpose.

Cheer$,
Harlan Lunsford, EA n LA

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#1 02-05-2004, 08:17 PM

Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
- quote -

> bobby wrote:

> > I attempted to buy a house in 2003. As part of the sale
> > agreement, I gave a depost of $5000.00 to the seller of the
> > property. Becuase of the delay in closing, I backed out of
> > the deal. The seller refused to refund any part of the
> > deposit, even though he sold the property immeditately to
> > another buyer.
> > > My question is do I need to send him a 1099 for the deposit
> > withheld by him ?

> 1099's are only sent from you if you are in a trade or
> business, AND this was in connetion therewith. This
> seems to be a personal transaction, hence no 1099.
> I know; you want to get to him; right?

Thanks for the reply. Yes, I want him to at least pay taxes
on what he took from me.

anyways, the check I gave him was from a company I own. So
I'm examining the possibilty that it can be considered a
business transaction.

but then, I would need his SSN#, which I don't have.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

02-04-2004, 02:35 AM

bobby wrote:

- quote -

> I attempted to buy a house in 2003. As part of the sale
> agreement, I gave a depost of $5000.00 to the seller of the
> property. Becuase of the delay in closing, I backed out of
> the deal. The seller refused to refund any part of the
> deposit, even though he sold the property immeditately to
> another buyer.
> My question is do I need to send him a 1099 for the deposit
> withheld by him ?

1099's are only sent from you if you are in a trade or
business, AND this was in connetion therewith. This seems
to be a personal transaction, hence no 1099.

I know; you want to get to him; right?

Cheer$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#-1 02-02-2004, 12:24 AM

I attempted to buy a house in 2003. As part of the sale
agreement, I gave a depost of $5000.00 to the seller of the
property. Becuase of the delay in closing, I backed out of
the deal. The seller refused to refund any part of the
deposit, even though he sold the property immeditately to
another buyer.

My question is do I need to send him a 1099 for the deposit
withheld by him ?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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