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1099 Misc; box 7 Nominee payment & CCC-36

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    1099 Misc; box 7 Nominee payment & CCC-36

    My client received a 1099 Misc w/ $29k in box #7. It is from the US Department of Agriculture National Finance Center. She was involved in a Wetland Reserve Program and they used her SS#. She never received the money. She turned it over to an excavator and he received every penny. She has an invoice from the excavator and a CCC-36 from the US Department of Agriculture "Assignment of Payment" with the same amount.

    The CCC-36 has the excavator's name, address and tax ID # along with the amount. Should I put the $29K on her Schedule C and then put $29k as an expense? I need to show it as a wash, but I'm unsure how it should be labeled, etc. Line 27 schedule C; Other expenses? What description? I'm e-filing her return, so I won't be sending any attachments. Thanks in advance.

    #2
    ccc payment

    Ross, I do not know for sure, but I would think that type of payment would go on sch F or
    a form 4835 if farm rental. Either way C,F or 4835 i would list as income and subtract out since taxpayer did not receive the money.

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