child income 4-H and FFA

[TAX4US]

I am wonderinghow you may treat childs income from selling animals at fairs etc? Some of these kids make real good money esp when relatives get in a bidding war.

I have heard net on line 21. Does not match 1099 received IRS cp 2000 later?

I have heard put on Sch D with cost being basis and sales price = form 1099 and show as long term.

I have heard subject to Kiddie tax.

Open for for sugestions. I did check Farmers tax guide. It says other income. Kiddie tax?

Thanks to all.

[TXEA]

I think it is reported on other income line - Form 1040 net of expenses (See Pub 225). It seems more in line with hobby income than investment income, so I do not think it would be subject to kiddie tax. However, if one reads the rules for the kiddie tax it certainly seems to apply to 4-H earnings reported under Pub 225 rules. This seems to define the definition of "gray area"

[gman]

Other income

I have done several on line 21 and attaching a statement show 1099 amount less expenses.