Speaking fees

[DTS]

Fees

$300 was add'l misc income from deposit printouts, not speaking fees. He can't even remember what the $300 was for. Total speaking fees were about $1,200 for two nights during the year.

D

[DTS]

Got off the phone with client

and was told that about 1/4 to 1/2 the fees paid were travel reimbursement.

D

[FEDUKE404]

What does Bill Clinton do....

....with his "speaking fees" ???

My vote is for such fees to be subject to SE tax, and where warranted Sch C expenses can be used.

At some point it is likely the client will receive a Form 1099-MISC, and then the discussion can start anew...."income" or "honorarium" or "other"

FE

[DaveO]

if it's only $300 what's the difference if it's line 21 or Schedule C-EZ?

I'll side with Jesse on this. If this person is well off and had other income then an extra $600 is not significant. The fact he does not solicited business is key. You can't be in a trade or business if you don't hold yourself out as being in a trade or business. In other words, no shingle, no business.

In a recent audit of a taxpayer who earned around $100k on their W-2 but only a few thousand on a "C". The auditor asked about the nature of the "C" income and I explained part of it was from being a consultant and part was royalties form a book they had written on the topic. The auditor said the royalties belonged on an "E". I diagreed stating that the consulting income and the book royalties wer both in the taxpayers usual line of work and were therefore an extension.

This case is just the opposite. No business no SE,

[DTS]

Fees

Thanks to all of you who posted. I took care of it and think everything will be OK.

Thanks, again!

D