On Wed, 23 Apr 2008 17:43:37 EDT, Harlan Lunsford
<hnslunsford[at]bellsouth.net> wrote:

[snip]

- quote -

Thanks. I'll check with them about their 1099.


--
Vic Roberts
Replace xxx with vdr in e-mail address.

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Ernie Klein wrote:
[...]
- quote -

And in both cases (cash or barter), it is taxable rental income to the
landlord. On the other hand, a landlord may have deductible expenses
for contracted repairs or improvements to his property, no matter in
what form they were paid for, cash or barter.

-Mark Bole

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Ernie Klein wrote:

- quote -

$6K. Gross revenue. How could the landlord possibly know whether the
tenant realized a profit or loss on the work?

The payer (landlord) has no idea what the tenant did or paid to provide
the agreed-upon improvement, he only knows he agreed to a barter in an
arm's-length transaction.

If the landlord was specifying how much the tenant could spend on
materials, that would be more like an employer-employee relationship,
and you don't want that.

- quote -


Schedule C-EZ. The recipient gets to document expenses, which result in
taxable net profit.

Or, report it whatever way is correct for the facts and circumstances,
and attach a statement explaining it.

-Mark Bole

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Victor Roberts wrote:
- quote -

Okay then, nothing wrong with issuing a 1099misc of course; however, it
is not SE income, so the amount should have been in box 3 and not in
box 7.

ChEAr$,
Harlan Lunsford, EA n LA

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In article <480f675b$0$25017$607ed4bc[at]cv.net> ,
"Haskel LaPort" <QBFanBoy[at]gmail.com> wrote:

- quote -

For what? $1K of barter income or $6K?

How does the taxpayer correct that if the landlord is unwilling to do
so? -- How does he tell the IRS that that he only received $1K of
income?

--
-Ernie-

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"Ernie Klein" <ecklein[at]pacbell.net> wrote in message
news:ecklein-8B2658.07413123042008[at]news.newsguy.com...
- quote -


The only error is that the landlord issued a 1099-misc when he should have
issued a 1099-B.


- quote -

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On Thu, 17 Apr 2008 15:44:38 EDT, Harlan Lunsford
<hnslunsford[at]bellsouth.net> wrote:

- quote -

No, this is a personal residence.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

--
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In article <fundjo$hcc$1[at]reader2.panix.com> , sethb[at]panix.com (Seth)
wrote:

- quote -

I still don't think this question has been (correctly) answered yet. I
still think that the 1099-MISC was issued in error.

The "someone" above did _not_ receive $6K of _income_ from the landlord
and he _did_ pay his rent, at least $5K of it, only he paid in material
rather than money - payment of rent in either case. I know of no
requirement that rent be paid in dollars rather than materials

(In other words, if I give the landlord $5K for rent and he goes out and
purchases $5K of materials or if I purchase the $5K of materials myself
and don't give the money to the landlord but the landlord gets the
materials, it is the same thing - a $5K payment of rent.).

If a 1099-MISC was issued at all. it should have been for the $1K which
_was_ income from labor.

If that is so, then how should the incorrect 1099-MISC be reported by
the taxpayer who received it?

--
-Ernie-

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In article <fucs5n$jft$1[at]reader2.panix.com> ,
Dick Adams <rdadams[at]panix.com> wrote:
- quote -

Exclusive contracts are not at all unusual in many professions.

- quote -

And no depreciation recapture (at 25%) when he sells, so maybe not so
screwed (the bad way).

Seth

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In article <fu94l2$he5$1[at]snarked.org> ,
D. Stussy <replies[at]newsgroups.kd6lvw.ampr.org> wrote:
- quote -

So someone pays $5K for materials, gets $6K off their rent ("earning"
$1K), gets a $6K 1099, and a tax bill on the full $6K (due to high
AGI)? That's not right. Their labor was worth $1K, they should not
be taxed on more than that.

Seth

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In article <s9TNj.9710$2g1.7791[at]nlpi068.nbdc.sbc.com> ,
Mark Bole <makbo[at]pacbell.net> wrote:
- quote -

That's fine; then, since receiving money isn't your motive, you don't
mind that a chunk of it goes to the IRS.

More seriously, the IRS taxes income independent of motive. (Whether
losses are deductible does dependon motive.)

Seth

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"John Levine" <johnl[at]iecc.com> wrote in message
news:fubhb2$k0l$1[at]gal.iecc.com...
- quote -

The forms I buy at Staples comes with software that takes care of this
without any fuss.


- quote -

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kastnna wrote:
- quote -

It's California's Prop. 13. From Wikipedia:

"Under Proposition 13, the annual real estate tax on a parcel of
residential property is limited to 1% of its assessed value. This
'assessed value,' however, may only be increased by a maximum of 2% per
year, until and unless the property is resold." (or improvements are
made to the property, which are added to assessed value at cost).

In addition, some counties allow older homeowners to "transfer" their
low assessed value from former home to new home.

The homestead exemption reduces assessed value by $7,000, hence about
$70 off the annual bill. (I say "about" because local special
assessments can result in a tax bill that is more like 1.2%).

In other words, in California the benefit of "locking in" a property tax
amount based on your purchase price will over time dwarf any homestead
exemption benefit -- assuming that "over time" includes a period of net
rise in property values, unlike the last two years and next year.

Interestingly, this also allows a convenient technique for identifying
taxpayers who might be incorrectly deducting mortgage interest on more
than $100K of equity debt -- if their property tax is relatively low
compared to their mortgage interest deduction, that is a strong
indicator they have owned the house for a long time and have "cashed
out" in one or more re-finances without plowing the money back into the
house (which would raise the assessed value and thus the property tax).

-Mark Bole

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William Brenner <wbrenner[at]nospamplease.net> wrote:
- quote -

Technically, you normally need more than one client to
be considered a professional.

- quote -

It is against public policy to business deductions for
expenses paid for meritricious relationships. So the
landlord would have non-deductible personal expenses.

Since he has no rental income, he has no rental deductions
and no depreciation. Talk about getting scr##w#&!

OTOH We should take up a collection and purchase a 3-year
subscription to the Noo Yawk Times for you-know-who. LoL

Dick

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- quote -

I do my own 1099 forms on a laser printer. I set them up in a word
processor as large labels. It took a fair amount of fiddling the
first time to get them to print in the right place (the smallest
package of 1099 forms from Staples has far more than I ever use,
fortunately) but the changes from year to year are petty minor.

Regards,
John Levine, johnl[at]iecc.com, Primary Perpetrator of "The Internet for Dummies",
Information Superhighwayman wanna-be, http://www.johnlevine.com, ex-Mayor
"More Wiener schnitzel, please", said Tom, revealingly.

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Harlan Lunsford wrote:
- quote -

subject to tax treatment accordingly? If so, would it not confer a
state of "professionalism" upon the women?

The likelihood of it being reported or 1099s being issued is about equal
to that of the above questioner subscribing to the 'New York Times'.

Bill

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On Apr 17, 10:12*pm, Mark Bole <ma...[at]pacbell.net> wrote:

- quote -


Sorry for being off-topic, but WOW! Really? Only $70 off their
property tax bill?

Where I live (Alabama) a homestead exemption reduces our assesed home
value from 20% ot 10%. I save $1000s every year by having a homestead
exemption.

Perhaps I am misunderstanding something...

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"Harlan Lunsford" <hnslunsford[at]bellsouth.net> wrote in message
news:hv7Oj.52789$vr3.39025[at]bignews2.bellsouth.net...
- quote -

Don't bait Mr. Adams.

I originally thought about using his first name in the above line, but
decided against the pun.

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Victor Roberts wrote:
- quote -


So to put a different spin on things. Let's say the landlord rents
only to nice looking women, and he doesn't need the income, and
all his tenants are struggling to make ends meet, and.... well, you
get the point.

Furthermore, to settle up the monthly rentals, tenants individually
(or collectively; so much funner!) provide certain services in exchange
therefore.

Question: who issues what 1099's to whom? and is it box 3 or box 7?

ChEAr$,
Harlan
LOL!

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On Apr 18, 7:07 am, Ernie Klein <eckl...[at]pacbell.net> wrote:

- quote -

Yes, this is an important attention; thanks for pointing out. I
followed the link and ordered some 1099-MISC to see what the order
process would be like. Surprisingly, it's free. I ordered a few;
hope they don't fine me for ordering forms and not using them. But
then there are several lengthy publications to read, of which
publication 1179 seemed to be the most relevant. They have all sorts
of rules on the paper, font, ink, etc, etc. I'm pretty sure my laser
printer at home would do the job, but then I'd have to do lots of
research to be sure. Then there's the problem of aligning the printed
ink with the paper. The publication 1179 does say that handwritten
forms will be accepted (page 13) though I didn't read the surrounding
text to see if applies only to 1099.


- quote -

The strangest thing to me is that regular 1040 forms can be downloaded
and filled out using the form fields of PDF. Then you can mail these
in. Presumably the IRS just scans these in. So In wonder why they did
not do this for the forms like W2, 1099-MISC, etc.

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >