Digging Deeper into Labor Costs

[Burke]

Well, well, the things you uncover when you ask enough questions. Concentrating on the 1099MISC issue question on Sche C re: business "labor" costs, client admits, well -- maybe one should have had one since it was over $600. She will check. Turns out the "one" is her housekeeper. After all, she has to have a housecleaner in order to work, does she not? So its a business expense. No, not really.

[Kram BergGold]

Home Office?

If the client has a home office then maybe a % is deductible.

[FEDUKE404]

Furthermore

If the client has a home office then maybe a % is deductible.

....and if the client has a Siamese cat with an attitude guarding the home office, obviously a portion of the cat food and vet bills can be deducted also!

FE

[RitaB]

Is it me?

Well, well, the things you uncover when you ask enough questions. Concentrating on the 1099MISC issue question on Sche C re: business "labor" costs, client admits, well -- maybe one should have had one since it was over $600. She will check. Turns out the "one" is her housekeeper. After all, she has to have a housecleaner in order to work, does she not? So its a business expense. No, not really.

Do you all find more of this type stuff with the October filers, or is just me?

Honestly, if all my clients were like the four who dropped off yesterday, I'd go nuts. Pretty sure it's not the "one percent" who need to be more "patriotic". It's the Mr. Octobers. And their housekeepers.

Sigh.

[FEDUKE404]

Observation

Do you all find more of this type stuff with the October filers, or is just me?

Honestly, if all my clients were like the four who dropped off yesterday, I'd go nuts. Pretty sure it's not the "one percent" who need to be more "patriotic". It's the Mr. Octobers. And their housekeepers.

Sigh.

Actually I have NO "October filers" although I do have to endure some March/April slowpokes who view the six-month extension as yet another reason to procrastinate.

Quite frankly, I would be extremely hard-pressed to accept ANY returns first brought to my business on October 1st....maybe even as far back to September 1st. Those types of returns generally can be "trouble" with a capital "T". In general, there is a pretty good reason those returns have not been started earlier - and such might relate to dealing with the (disclosed) facts and/or with the individuals involved. At least having to deal with such folks around April 10th gives you an escape option that essentially does not exist in October. I just don't need the money enough to get into those October-deadline situations.

Just my 2¢ worth. Everyone has to make their own choices.

FE

[Burke]

If the client has a home office then maybe a % is deductible.

I don't want to even go there.

[Kram BergGold]

Burke?

Your response leads me to believe he has a home office. If so, then cleaning it is deductible. Maybe he just gave you the proper percentage to deduct?

[Burke]

Not sure this client has a home office. Not sure what she would use it for. Since she has a loss this year, no HO ded anyway. She works out of a checkbook. She is not an organized person, takes her until Sept/Oct every year to get her business info to me, (handwritten) and has not taken my advice to get QB or other bookkeeping system to handle her accounts. She is reticent to collect her receivables and in general, lacksadasical (sp?) about many things. The last thing I want is to put up a red flag for an audit. This is a full-time endeavor for her, with large gross income, but she doesn't seem to make money at it except every so often. Her spouse has his info to me every year by filing deadline, and it is harangue, harangue, threaten, etc. etc for months to get hers so they can file. (He does it, not me.)