D.F. Manno wrote:

- quote -

There really isn't enough facts present to make a
determination.

Here's one possible scenario without having the facts.

You say the camp "gave him" money and the camp "gave him"
the income in excess of expenses. This sounds as though the
child was provided some money to use. The income was
collected by the camp and when it was discovered that income
exceeded expenses the camp decided to make a gift to the
child! The whole thing was nothing more than an educational
exercise in starting and running a business.

I could think of more scenarios.

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D.F. Manno wrote:

- quote -

What say I? among others? Well, the total amount paid for
day care is the form 2441 amount, in toto.

The fact that the kid earned what we call "hobby" income
during the camp, has no relation to what his mother paid.

Therefore, if the money to be paid by the jerk includes the
amount for child care, then the kid's separate income has no
bearing thereon.

But contrary to public opinion as posted elsewhere, I am not
among those "malicious" ones. Why am I reminded of the
motto of Scottish Stuart kings? "Nemo me impunit laccesit."
(no guarantee on the Latin spelling however.)

ChEAr$,
Harlan Lunsford, EA n LA

Moderator:
I was only trying to show you respect.

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"D.F. Manno" <dfma...[at]mail.com> wrote:

- quote -

I believe you are correct.

- quote -

Tell the ex-, "See you in court."

- quote -

He's trying to wiggle out of his obligation by having his
own child cheat on his taxes and claim non-existent business
expenses.

- quote -

There probably is no cite. Therefore, tell the ex, "See you
in court."

- quote -

Dick is correct. It isn't.

- quote -

Probably not. Can the ex- provide a cite?

I know going to court is a costly, time consuming option.
That doesn't mean you can't threaten the ex- with doing
that.

By the way, as any one considered asking the day camp how
they view the amount given to the kid? Maybe if they're
presented with all the facts they will say, "of course it's
a refund of our fee."

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A follow up to my post of a few minutes ago.

The kid has a taxable prize reported as "Other" income if he
meets the filing threshold. There is no reduction in the
camp fee. There is no reduction in the amount owed by the
ex- to the op's sister.

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"D.F. Manno" <dfmanno[at]mail.com> wrote:

- quote -

It is most unfortunate that too many of us know too many
of them

- quote -

This is very simple. Let him do what ever he wants so
long as it does not affect your sister's return or
require your nephew to cough up the profits. Then find
a malcious third party, e.g., Harlan, Stu, Phil, Seth, or
me, who will report him to the IRS.

- quote -

"Regs? Regs? We don't need no stinkin Regs!" It was a day
camp. There was no intention to enter into a business to
make a profit. Also it is not a profit unless it exceeded
the cost of the day camp. Not to mention it is the child's
money. To whom will the day camp issue a 1099? I say
they won't be bothered.

I'm sending this to a friend of mine so she can see she's
not the only one who has problems like this.

Dick

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My nephew attended a day camp during the summer. In one of
the activities, the camp gave him money to set up a small
business. His revenues for the business exceeded expenses,
and the camp gave him (actually my sister) the difference.

My sister asked me how to treat the "profit" on her Form
2441. I am of the opinion that it should be treated as a
refund of part of the camp fee, that is, it should not be
included as a qualifying expense.

Enter the ex-husband. (As this is a professional forum, I
shall refrain from offering my opinion of him.) He is
claiming that the money is an actual business profit, and
that they should treat the entire camp fee as a qualifying
expense.

This is an issue because of the custody agreement, though
I'm not sure exactly how. I think he pays part of the child
care expenses less the credit.

Now my sister needs a cite because the ex won't accept the
refund idea without one.

What say you? Is it not a qualifying expense? I can't see
how it could be a profit from a business or earned income.

Whatever it is decide to be, is there an IRS reg or
publication or other authority I can cite?

Thank you.

--
D.F. Manno | dfmanno[at]mail.com

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