1099 misc and expenses on auto

[photoman]

I have someone that just brought in a 1099misc for 14,000 . He did cleaning for a club and they paid him with a 1099misc and 14,000 in box 7. They provide cleaning supplies, etc and all he does is drive to and from the job. He wants to take miles on auto. He does not doe this for anyone else and has really no formal business books he keeps. Yes it would be easy to figure the miles to and from work.

I do not think and can't find anything in the manuals to indicate if I should give him auto expense or not. Any comments.

[Jiggers]

I have someone that just brought in a 1099misc for 14,000 . He did cleaning for a club and they paid him with a 1099misc and 14,000 in box 7. They provide cleaning supplies, etc and all he does is drive to and from the job. He wants to take miles on auto. He does not doe this for anyone else and has really no formal business books he keeps. Yes it would be easy to figure the miles to and from work.

I do not think and can't find anything in the manuals to indicate if I should give him auto expense or not. Any comments.

Goes to Schedule C or C-EZ.

He is self-employed. $14,000 is a lot of money for doing something on the side.

No mileage if just commuting from home to work and back home again.

However, if going from his regular job to this cleaning job, the mileage between each is deductible. But the mileage from this cleaning job to his home is not.

You MUST have some kind of records for the mileage..

See the TaxBook 10-2. Good chart.

Check out IRS Pub 463, good section on commuting.

[photoman]

This is his only income. Most likely he should be a W-2 person. I will read the pub and tax book. Thanks and sounds like he may get zero on vehicle or at least very small amount

Thanks, Ron

[JohnH]

That's going to be a fun conversation with the client...

[Jiggers]

This is his only income. Most likely he should be a W-2 person. I will read the pub and tax book. Thanks and sounds like he may get zero on vehicle or at least very small amount

Ron, in cases like this one, I show the client the IRS PUB. Especially that chart.

He can't argue with that. And then it isn't your fault.

But he will go elsewhere with his 1099 and scribble something out about total mileage and business mileage, sign it, and the new preparer will do the return.

[JohnH]

And what Jiggers suggests isn't a bad outcome. Because even if he has you prepare this year's return, chances are he won't be back next year. Better to spend your time cultivating long-term relationships that fighting uselss battles with one-night stands.

[kpangelinan]

And what Jiggers suggests isn't a bad outcome. Because even if he has you prepare this year's return, chances are he won't be back next year. Better to spend your time cultivating long-term relationships that fighting uselss battles with one-night stands.

AGREED!!!...............

[taxea]

Please let us know the outcome. Where does he come off thinking that this is not self-employment....am I wrong or is this cleaning a one time thing? Sounds like he does it consistently and with an income as the intent.

[Kram BergGold]

Ss-8

The other option is turn the payer in and treat income as W-2 and pay 1/2 of FICA and Medicare on Form 8919.

[Gary2]

I wouldn't jump to conclusions about it being on a W-2.

This is not an uncommon arrangement. While providing the cleaning supplies would argue towards an employee relationship, it's often the only distinction between this and hiring a cleaning service that would clearly be a separate business. Other than supplies, the cleaning person typically sets the hours (within limits), decides how to do the work, gets paid the same whether it takes one hour or two, and is free to work for others.

I'm not saying the IRS or a court would definitely uphold an independent contractor conclusion, but it's not cut and dry.

[S T]

My experience has been that most cleaning/janitorial services are independent of the person/business they are working for. There are some clients, that will provide their own cleaning supplies for the cleaning service/janitorial service to use, probably a client preference.

Unless the Business Client is a very large well staffed Employer and controlling hours of work and all of the other items on the SS8 - I do not see them hiring a Full Time Cleaning/Janitorial Service on Payroll it would be sub-contracted out.

From the OP I don't have an issue with the 1099 Misc - would be whether or not the Mileage is allowed/allowable and the record keeping.

My 2cents

Sandy