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    #1

    Stock Options?

    Clients comes in he has a 1099misc box 3 filled in with an amount. After asking about this income he states that he is doing some work for a start up company they have no money so they paid him in stocks that are valued at .10 each. My questions is how do i report this do I just put it down on line 21 as misc income or did the company mess up the reporting. Any help would be great I have never encountered this.

    Superman
    Tags: None
    #2
    Compensation

    Sounds like compensation to him for services rendered. He received stock for services. Independent contractor. Schedule C. Maybe!

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      #3
      Schedule C and next year a Schedule D for worthless stock.

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        #4
        Thanks

        Ok that is what I thought but just wanted to verify. On the Sch D for next year is the cost basis the amount on the 1099 misc now? Of course assuming the stock goes bust and he does not end up to be a millionaire.

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