A.G. Kalman wrote:

- quote -

Oh, I like the way you think, A.G. I could do that, i.e.
put it on a schedule d.

ChEAr$,
Harlan

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

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

Not all issuers of 1099s understand what they are doing. A
local community college sends $1440 to retired professors as
a reimbursement for medical insurance. They used to use box
7 until an Arizona IRS office tried to charge the retired
professor with self-employment tax. (LA office apparently
understood.) Now they properly put it in box 3.

I'd argue that the company did not employ the person in any
way. It was a sale of something he is not in the business
of producing or developing.

Nan, EA in LA

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Harlan Lunsford wrote:
- quote -

I agree it is not self-employment as long as this was a
one-time event. Could it possibly be the sale of a capital
asset as it appears to be personal use property created 4
years ago?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Missy wrote:
- quote -

I think, Missy, that this is arguable. My position would be
that this one time sale of software does not fall within a
(regular) trade or business, and accordingly, I would not
include a schedule se; instead placing the 4000 on line 21.

ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"bshee...[at]gmail.com" <bshee...[at]gmail.com> wrote:

- quote -

Yes, you worked in order to earn the money and yes you are
subject to self employment tax as well as income tax. The
form 1099misc is correct.

See Schedule C as well as Schedule SE.

Missy Doyle

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Yet another Self-Employment Scenario....

Four years ago I wrote a piece of gaming software intended
for the private use of my friends and I. After growing bored
with it I mothballed it. Last year a company approached me
and offered to purchase the software. I sold it for $4000.
They issued me a 1099-Misc with box 7 (Non-employee
compensation) filled in. I am not maintaining the software
or assisting the company with operating it.

Does the IRS consider this $4000 subject to Self-Employment
Tax?

If not should I request that the company re-issue the 1099
with box 3 (Other Income) filled in?

Thanks

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >