New client is a hairdresser that pays rent for a booth in the owner's business. I told her she has to give a 1099M to the owner. Would the amount go under box 1 rent? Another preparer told me to list it under "Other Income". Why would that be when the amount she pays is for rent? I am starting to question myself. Thanks for any help!
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My client is the recipient
My client receives the "rent" payments from 2 barbers who "rent" chairs from him. I put the "rent" on the other income line of Schedule C because that is where he deducts his rent, utilities, supplies etc. Too confusing to try to split out onto a Schedule E. A little extra SE tax is going to help him more than it hurts him.Todd Fogelberg, EA -
Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.Comment
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Not the same question on both threads....
My original post was not asking the same question. My present post asks where to post the rent info on the 1099M, not where to post it on the Schedule C. The original post was also about the name of the business.Comment
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See Topic 414 - Rental Income and Expenses on IRS Website. That should give you guidance for your specific situation(s).Always cite your source for support to defend your opinionComment
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