"Gil Faver" <rowdy'sboss[at]xxyz.com> wrote in message
news:hIyAj.726250$kj1.699740[at]bgtnsc04-news.ops.worldnet.att.net...
- quote -

Bettcha the mother and aunt show it as an expense against the remodeling,
which gives the IRS a comparison point.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

"Stuart Bronstein" <spamtrap[at]lexregia.com> wrote in message
news:Xns9A5D766773401avocatstuyahoofr[at]130.133.1.4...
- quote -


aw, Stu. You are answering the easy question here. Any opinion on whether
it is self employment income? 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

"GSalisbury" <salsburyg.at.comcast.dot.net[at]giganews.com> wrote:
- quote -

Money given in exchange for services, even if not legally required to
be paid, is considered by the IRS to be taxable income. It's not
exactly the same, but look at a tip given to a waiter in a restaurant.
You have no legal obligation to leave one, and the size of the tip is
also up to you. However you give it because you received services, so
it is not a gift. It is taxable income.

Stu

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

Gil Faver wrote:
....
- quote -

I'm not a tax pro, but the one-time aspect of this to me would qualify
it as "other income" and I'd report it on Line 21.

--

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Mar 8, 12:15 pm, "Gil Faver" <rowdy'sb...[at]xxyz.com> wrote:
- quote -

is enter it in turbo tax both ways, and see which comes out better for
myself, the tax payer. Seems to me you have 3 options:

1) Take it as a gift and do not report it at all,
2) Take it as income, but assuming your not in the building trades
profession, report it on line 21 as 'Other Income'.
3) Take it as Self Employment income. If you do, you may be able to
funnel other deductions under the Self Employment banner and in some
cases, it will reduce your taxes. But youll also likely have to pay
Self Employment tax in addition to Income Tax.

How is it possible to have the same income treated in 3 such different
ways? Well, I think youll find, over time, accountants would respond
to your question so that all three interpretations would be
represented.. And thats one of the problems with our tax laws.. theyre
very Ambiguous, and Interpretation is 90% of the game.. So, so long as
you can make a case and justify the way you handled the money from a
tax perspective, youll be ok.. At the worst, it may be Disallowed.
So, which should you do? Id probably take it as a Gift, and not
report it at all!

========================================= MODERATOR'S COMMENT:
Please delete all non-essential parts of the message you are responding to.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

"dpb" <none[at]non.net> wrote in message news:fr1pb8$iq9$1[at]aioe.org...
- quote -


--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

"GSalisbury" <salsburyg.at.comcast.dot.net[at]giganews.com> wrote in message
news:VeWdnaxEQ_ZCRk_anZ2dnUVZ_o-mnZ2d[at]comcast.com...
- quote -

not a gift. So, any thoughts on the self employment income questions?

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

GSalisbury wrote:
....
- quote -

Except OP also said "_will_ receive" and the fact it doesn't seem to be
clearly a gift to the OP makes it look far more like a bribe than a
gift...

--

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

GSalisbury wrote:
- quote -

Sure thing, that's family. However, it's also income to be reported.

- quote -

No doubt. I used to do my mother's tax return for free. And I still
do my wife's tax return for free, but without any "quid pro quo",
ifyougetmydrift.

- quote -

What does "presheateit" mean?

Ah yes! I went back and said it fast aloud. got it now.

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 (2007) - All rights reserved. > << ------------------------------------------------------- >

"Seth" <sethb[at]panix.com> wrote in message
news:fqvuva$hta$1[at]reader2.panix.com...
- quote -

OP said "...agreed to help her mother and aunt ..."
Isn't that family?
Don't families do each other favors?
Families sometimes say thanks presheateit
Geo.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <VeWdnaxEQ_ZCRk_anZ2dnUVZ_o-mnZ2d[at]comcast.com> ,
GSalisbury <salsburyg.at.comcast.dot.net[at]giganews.com> wrote:

- quote -

Because you don't get gifts for doing work, you get pay.

Seth

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

"Gil Faver" <rowdy'sboss[at]xxyz.com> wrote in message
news:hIyAj.726250$kj1.699740[at]bgtnsc04-news.ops.worldnet.att.net...
- quote -

Why wouldn't it just be a gift for doing all of the work and move on?
Geo. S.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

taxpayer has, somewhat reluctantly, agreed to help her mother and aunt
substantially remodel a small rental bungalow so that it might once again be
rented. Aunt and mother stand back and do nothing, and taxpayer has all the
interaction with the contractor, etc. Property is owned by mother and aunt,
and not at all by taxpayer. Taxpayer will receive a small amount for her
efforts, say $5,000.00. Is this self employment income to taxpayer? She is
not in the business of renting property (this or others) owned by her, nor
is she in the business of remodeling.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >