Self Employed 14 year old

[tpnl]

Client's 14 year old daughter has a paper route. This paper route is in the country and Dad drives her around. Would you take mileage on her schedule C?

[AJsTax]

EXEMPT Income

TTB page 5-18. paper route for under 18 is exempt from se tax, etc.
Child can not take deduction for something that did not cost him.
Should be a line 21 item if income is high enough.
who reports paper route income anyways?? probably below the threshhold when required to file a return.

[tpnl]

Received a 1099 Misc

I know no SE, but the 1099 Misc is high enough to create tax liability. To lower the tax liability, I was thinking of making an adjustment for the mileage.

[AJsTax]

still go back

to the original statement that if the taxpayer, in this case the child, has no actual costs, then there are no costs to right off.
If he wants to pay dad for driving him around in the future, ok.
Until there is actual layout of money for the expense then the cost is a gift from the parent.

[mactoolsix]

If she pays Dad

for the gas, then Dad gifts the money back to her, she has her deduction!

Slap that girl on the back for being a go getter, and Dad too for supporting her.

Love it when you hear about kids that are willing work a bit.
Mike

[MAJ]

Hmm..

Thinking smart -->

but seriously, did anyone read anywhere that said Dad did it for free? Maybe the gas was paid out of the funds created from the paper route. If you can't take the mileage at least the 'MISC" can pay for the gas.

I (we all) prepare taxes and I have FOUR kids! Do you have any idea the cost of gas!?? It's almost a full time job carting them around (at least the gas bills dictate that). Seriously. My stay at home wife is more exhausted than I am. Me, the one up at 5am. Home at 7-7:30pm - Clients 7-11pm. I usually go to bed between 12-1am during the week. Sleep until 7:30 on weekends! YEA! -- Clients all weekend from 9am - 9pm...... SH*T... Monday already..... cyclie starts again.... She's tired..... OKAY....

Oh.. sorry - did I say that out loud..??
I hope you / we are all holding up well... Crazy winter on the east coast... Busy 24/7 - this is my vent......
I should go nap now...

for the gas, then Dad gifts the money back to her, she has her deduction!

Slap that girl on the back for being a go getter, and Dad too for supporting her.

Love it when you hear about kids that are willing work a bit.
Mike

[FEDUKE404]

Just curious

While I understand fully the "free from SE" issue for a child having a paper route, this situation does not quite completely pass the smell test.

If the route involves covering large distances "in the country," it seems somewhat shaky that the company would give such a route to a child.

Are you sure it's not the dad's account in the first place, and he is perhaps trying to pull a fast one on the IRS? Is there even a Form 1099-MISC ?

FE