Speaking fees

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  • DTS
    Senior Member
    • Jun 2005
    • 1852

    #1

    Speaking fees

    Client has a very small amount of misc. income, half of which is for an occassional speaking engagement at a couple organizations like a non-profit and church.

    Are the speaking fees subject to SE tax?

    Thank you,

    D
  • kaimana
    Member
    • Apr 2009
    • 90

    #2
    If this is an ongoing gig, even occasionally, and he gets paid, I would say yes.
    DIY programs are not a replacement for a good tax pro

    Comment

    • Gretel
      Senior Member
      • Jun 2005
      • 4008

      #3
      I think so too.

      Comment

      • newbie
        Senior Member
        • Nov 2006
        • 333

        #4
        Call Geitner wasn't that part of his troubles - JK

        If a profit motive and done on a regular basis I say speaking fees subject to SE tax.

        Comment

        • BHoffman
          Senior Member
          • Feb 2008
          • 1768

          #5
          DTS - is the taxpayer actively engaged in the business of public speaking? Does he advertise and spend some measure of time and money to obtain engagements?

          I don't think one or even three small engagements per year necessarily makes this a business.

          Comment

          • DTS
            Senior Member
            • Jun 2005
            • 1852

            #6
            Fees

            OK, what do all of you consider "regular or ongoing"?

            This occured a couple times a year. Not trying to be a smarty-pants, but I'm quite sure there is not even a profit motive here.

            Regular and/or ongoing. I guess I'll check on this.

            D

            Comment

            • DTS
              Senior Member
              • Jun 2005
              • 1852

              #7
              Originally posted by BHoffman
              DTS - is the taxpayer actively engaged in the business of public speaking? Does he advertise and spend some measure of time and money to obtain engagements?

              I don't think one or even three small engagements per year necessarily makes this a business.
              B,

              This is exactly the point with my fellow. He is not actively engaged in this, does not solicit anyone to speak (he wrote a popular book some years ago) and is asked to appear once or twice a year. His regular business is that of successful contracting, not writing or speaking.

              I suppose if I were contacted to give a talk, paid of course, on mowing lawns, I'd have to pay SE on this.

              D

              Comment

              • newbie
                Senior Member
                • Nov 2006
                • 333

                #8
                Originally posted by DTS
                Client has a very small amount of misc. income, half of which is for an occassional speaking engagement at a couple organizations like a non-profit and church.

                Are the speaking fees subject to SE tax?

                Thank you,

                D
                What is the other half of misc income from? What does he speak about - something in is line of work? Probably a lot more questions and answers needed to determine.

                Comment

                • BHoffman
                  Senior Member
                  • Feb 2008
                  • 1768

                  #9
                  DTS - be brave

                  From how you are describing this, I really don't think you think this rises to the level of a bona fide business operation.

                  Now, what if the Sch C results in a loss?

                  Comment

                  • DTS
                    Senior Member
                    • Jun 2005
                    • 1852

                    #10
                    Finding my happy place!

                    Originally posted by BHoffman
                    From how you are describing this, I really don't think you think this rises to the level of a bona fide business operation.

                    Now, what if the Sch C results in a loss?
                    If put on a C with expenses, no SE. Geez, this sounds kinda basic

                    Comment

                    • Gretel
                      Senior Member
                      • Jun 2005
                      • 4008

                      #11
                      Interesting - I guess we could consider all activities not entered into for profit a line 21 income. Isn't this what the IRS says? No profit motive - no biz - therefor no Sch. C? I don't know if there is any consideration with hobby income about continuous and regular activities. The IRS probably will try to classify as biz if gain and as hobby if loss but they cannot have it both ways.

                      Knowing a little more about the situation I would claim income on line 21, expenses might be lost.

                      Comment

                      • DTS
                        Senior Member
                        • Jun 2005
                        • 1852

                        #12
                        Originally posted by newbie
                        What is the other half of misc income from? What does he speak about - something in is line of work? Probably a lot more questions and answers needed to determine.
                        Newbie,

                        Not sure what the other smaller amounts are for. They amount to a little more than $300. This showed up on deposits as misc, without any knowledge of what they were for. The speaking fees were labeled by the payor orgs.

                        D

                        Comment

                        • tacks
                          Senior Member
                          • Feb 2009
                          • 276

                          #13
                          Originally posted by BHoffman
                          ...Now, what if the Sch C results in a loss?
                          Originally posted by DTS
                          If put on a C with expenses, no SE. Geez, this sounds kinda basic
                          Those are the exact thoughts which entered my mind. Thanks for posting.

                          Comment

                          • erchess
                            Senior Member
                            • Jan 2007
                            • 3513

                            #14
                            My Two Cents

                            So the client has roughly $300 in public speaking income and a bit more than that in public speaking expenses and roughly $300 in income that he doesn't know what it is for. And the taxpayer is a relatively well off individual and certainly not in the lowest tax bracket. Is that about it?

                            I think I would take the position that the money we are arguing about is too small to be worth arguing about. Put the entire amount on a Sch C and subject the profit to both income and SE tax.

                            Keep in mind he has the right to make the bank tell him who the mystery money is from. That might be useful if you are determined to get everything perfect.

                            Comment

                            • Jesse
                              Senior Member
                              • Aug 2005
                              • 2064

                              #15
                              I may get beat for this but...........

                              if it's only $300 what's the difference if it's line 21 or Schedule C-EZ?
                              http://www.viagrabelgiquefr.com/

                              Comment

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