Form 1099-Misc Other Income

[rfk]

Opinion for where...

Client received a 1099-MISC, line 3 for a health study to view certain related health tests at a University hospital for 2 days, although he did not have any disease. I am thinking 1040, line 21, not C, but want opinions whether this is the correct way to categorize it.

Thanks,

rfk

[Gretel]

If this is the only time he did this and doesn't plan to do it again, then I certainly opt for line 21.

[Koss]

Guinea Pig

That sounds like a guy that got paid to be a subject in some sort of study, trial or experiment.

They call it "renting your body to science."

So the income might be rental of personal property...



[LMAO]

I agree with Gretel. If it was a one-time thing, then it's not a trade or business, so it would go on Line 21. I remember reading an article some years ago about college students and other folks that sign up for these things on a regular basis, participating in as many as a dozen or more each year, making quite a bit of money. In that case, it might become a trade or business, and it might belong on Schedule C.

Ironically, the rules for "rental of personal property" are the same.



Seriously. If you occasionally rent your table saw to your neighbor for $25 or something, then you put it on Line 21. But if you are in the business of renting personal property, e.g., you are running a tool rental shop as a sole proprietorship, then it belongs on Schedule C.

BMK

[Gretel]

Seriously. If you occasionally rent your table saw to your neighbor for $25 or something, then you put it on Line 21. But if you are in the business of renting personal property, e.g., you are running a tool rental shop as a sole proprietorship, then it belongs on Schedule C.

BMK

Seriously, I hope nobody is so stupid to tell the tax preparer about it. Smile. Just could not help myself.

[rfk]

Thanks guys

Thanks for the info.

rfk