Alaska help needed! Wood Stove Exhange program

[nwtaxlady]

I have a client that moved here from Alaska. He has a 1099-MISC from Fairbanks North Star Borough. He said they have a wood stove exchange program.
So is this a loan with the Borough that he may have defaulted on and therefore, they issued him a 1099-Misc for other income of $4000?

I will call him to ask more questions about this but I didn't want to be completely in the dark about this. LOL.

[BOB W]

I goggled this..................

http://www.newsminer.com/news/local_news/fairbanks-borough-s-wood-stove-exchange-program-is-gathering-steam/article_ec60345e-17f4-5380-8071-b0106d2b1e5d.html

Not exactly what you were looking for but info about exchange program.

[TAXNJ]

Maybe

I have a client that moved here from Alaska. He has a 1099-MISC from Fairbanks North Star Borough. He said they have a wood stove exchange program.
So is this a loan with the Borough that he may have defaulted on and therefore, they issued him a 1099-Misc for other income of $4000?

I will call him to ask more questions about this but I didn't want to be completely in the dark about this. LOL.

Maybe the forgiven debt may result as income. Yes, you need more info, but watch out that your bill does not fall into "forgiveness" category. Always leary about when this happens and ask for payment upfront and make sure payment clears. Just a simple business policy.

[BOB W]

Is this a sale of his stove because he didn't need it any more?

[nwtaxlady]

I have more info & an answer.

I talked to the client and it is a program to encourage people to use better efficient wood burning stoves. Actually, it was the Borough's Ordinance they adopted to reduce the fine particulate pollution (PM2.5). They pay you $4000 to go buy a new wood stove (certain criteria) so he was out of pocket nothing! He received a 1099-MISC for other income $4000.

[TAXNJ]

I will

I talked to the client and it is a program to encourage people to use better efficient wood burning stoves. Actually, it was the Borough's Ordinance they adopted to reduce the fine particulate pollution (PM2.5). They pay you $4000 to go buy a new wood stove (certain criteria) so he was out of pocket nothing! He received a 1099-MISC for other income $4000.

Wow. I would take that offer. What a great borough or state that gives you money!!!! This should be voted "post of the year".

After talking to your client it sounds like a non issue since your 1st post and client should be able to pay you and any tax from the $4k.