1099Misc for a Tuba

[winnie]

This has to be the funniest thing I have ever seen. And we all run in fear because of a form that was issued in error! Thanks for the laugh on this one!

[GIMoe]

Afraid?

This has to be the funniest thing I have ever seen. And we all run in fear because of a form that was issued in error! Thanks for the laugh on this one!

Afraid? Who's afraid? Not me ... (let me know when those agents leave and I'll come out of hiding to show you just how unafraid I am!)

[dyne]

sale of tuba

I would report it on schedule D just like you report a residence or any other personal
asset sold. Drake Tax Software even has a code on the schedule D :
PL for personal loss so that the loss is EXCLUDED from the capital gains and losses
reflected.

[Bees Knees]

Anything other than reporting it on Schedule C and zeroing it out will generate an IRS letter. It is irrelevant that this is the wrong way to report it. From a tax standpoint, one wrong always requires a second wrong to make it right.

As to the school issue, anyone watch “Are You Smarter Than a 5th Grader?”

The blond from a couple nights ago got up to $300,000 and then quit on the 1st Grade question, “What is the only continent that is also a country?”

[jainen]

I gave it up

>>anyone watch “Are You Smarter Than a 5th Grader?”<<

I gave it up when they insisted that Canada is north of the U.S.

[thomtax]

>>anyone watch “Are You Smarter Than a 5th Grader?”<<

I gave it up when they insisted that Canada is north of the U.S.

And I suppose that you got unhappy with those dadgum Canadians when they said that they live in America too? :-)

LT

[jainen]

whatever they want

>>you got unhappy with those dadgum Canadians when they said that they live in America too?<<

Heck no. This is a free country--people who live here can say whatever they want.

[Waldo]

1099 issued in error

There was a similar mistake made in our local school district which involved all the retirees. The financial person refused to correct the 1099's. I put the amount on a schedule C, noted that the 1099 was issued in error and cited the regs. This happened in 2003. Someone who had already filed including the 1099 amount, amended when I told her what to do and received a refund. I know that this doesn't make it the definitive approach, but it did work.

[erchess]

Authorities

Someone says that you CAN put on Sch D the sale of a personal use asset at a loss and disallow the loss. That's what I had always thought, but I can't find any authority that says so and someone else says (if I understand correctly) that you can never put the sale of a personal use asset at a loss on Schedule D. I'd like for people holding these positions to cite relevant authorities.

[Gene V]

I only time you would want to report a loss from capital assets held for personal use is when you receive a 1099-S for real estate.

From the instruction for Schedule D, page D-2
Loss from the sale or exchange of a capital asset held for personal use is not deductible. However, if you had a loss from the sale or exchange of real estate held for personal use for which you received a Form 1099-S, you must report the transaction on Schedule D even though the loss is not deductible. The instruction gives you an example on how to report the transaction on Schedule D.

This may apply for a 1099-MISC.