Income not subject to Sel-employment tax

[Kurly]

Tax Payer received a Form 1099-Misc, Box #7 $ 2,600. T/P an over the road truck driver for about 8 years. T/P received the above $'s for doing some maintenance work on a car wash. (Not his employer's) He had income of $ 95,000 from truck driving from his regular employer.

Question: would you input the Form 1099-Misc on line # 21 not subject to self-employment, since it was a one time occurance?

thanks

Kurly

[RLymanC]

1099 Box 7

Make it simple....C-EZ pay the se tax

[MilTaxEA]

Was it truly a one-time event? Is he never intending to do it again, and has he never done it in the past? Is it related to a current or former job?

See Batok v. Commissioner, T.C. Memo. 1992-727.

[taxea]

Tax Payer received a Form 1099-Misc, Box #7 $ 2,600. T/P an over the road truck driver for about 8 years. T/P received the above $'s for doing some maintenance work on a car wash. (Not his employer's) He had income of $ 95,000 from truck driving from his regular employer.

Question: would you input the Form 1099-Misc on line # 21 not subject to self-employment, since it was a one time occurance?

thanks

Kurly

I would. Not subject to SE as not done regularly or in TP's normal line of work.

[Jiggers]

I say it goes on Schedule C. I would bet a ton of money that he does this on the side and that this is the first 1099MISC that he received.

Like those that bring in that one W-2G. They didn't walk into the casino and play one machine and win the jackpot on the first pull and walk out of the casino after collecting.

[Jesse]

Once again Facts & Circumstances. Initial reaction is the Schedule C Subject to self employment tax. For $2,600 I'm guessing it wasn't a one day maintenance job, but probably some routine maintenance done throughout a period of time. In my opinion it's another one of those grey areas.

[Bees Knees]

Question: would you input the Form 1099-Misc on line # 21 not subject to self-employment, since it was a one time occurance?

I would. Not subject to SE as not done regularly or in TP's normal line of work.

The problem is, what do you do when he shows up with another 1099 next year for the same "one time" work that he told you last year he would never do again?

[BP.]

The problem is, what do you do when he shows up with another 1099 next year

As well a few IRS notices- some opened, some not- that he conveniently brings in at tax time . . .

[JohnH]

I'm trying to visualize how this happens.

Maybe he's getting his car washed one day and he casually mentions to the owner that he knows how to fix up car washes even though he works full time as a truck driver.

The response - "You're hired, but just on a one-time basis."

Sounds believable to me...

[FEDUKE404]

It's not work until it's........WORK!

The problem is, what do you do when he shows up with another 1099 next year for the same "one time" work that he told you last year he would never do again?

I guess you would need to reassess his definition of "one-time event."

Amended return for prior year 1040X verbiage might be thus: "Preparer excluded income on original tax return from self-employment tax since it was new, non-recurring employment. Based upon recently acquired information, the employment income did not fall into that exclusion category. See attached Form SE." Yeah, that oughtta fly quite well!!

For my 2¢ worth, I think the "I only did it once" excuse does not hold very much water, although those who support the infamous "summer siding job" obviously feel otherwise.

Employment is employment with some side roads for more restrictive hobby work.

FE

[MilTaxEA]

For my 2¢ worth, I think the "I only did it once" excuse does not hold very much water, although those who support the infamous "summer siding job" obviously feel otherwise.

Have you ever read the Batok v. Commissioner, T.C. Memo. 1992-727 case?

[ddoshan]

Tricky part is, I believe (trusting a not very good memory) the instructions for the 1099Misc box 7 indicate that if it is a sporadic activity to report the amount on line 21. Just what constitutes a sporadic activity I do not know.

[FEDUKE404]

memo

Have you ever read the Batok v. Commissioner, T.C. Memo. 1992-727 case?

REPEATEDLY

[Bees Knees]

Have you ever read the Batok v. Commissioner, T.C. Memo. 1992-727 case?

Yes I have.

The court has been known to make a dumb decision now and then.

[thomtax]

Have you ever read the Batok v. Commissioner, T.C. Memo. 1992-727 case?

No - How about sharing your knowledge about it with us?