1099-misc

Discussion in 'Business Operations' started by illday, Mar 20, 2007.

  1. illday

    illday LawnSite Member
    Posts: 89

    Most of the time I'll do a search on this site and usually find the answer to my question. This one is a little different and I'm posting this here because I know alot of you have experience receiving 1099-misc as outside contractors.

    I have a full time job and my wife also has a job. I also have a solo landscape business that I do on the side (going on 5 years now) and have always done my own accounting (turbotax sched c).Most of my profit last year was reinvested into equipment last year so there isn't a big tax bill there.

    Me and my wife also write music and received 3 seperate 1099-misc for royalties. One for me, one for my wife and one for the publishing company she set up. Turbo tax is having me do a seperate sched-c for all 3 1099-misc which would total 4 sched -c for our tax return(counting my landcaping). That would mean that not only do i have to pay income taxes but I would have to pay 4 seperate small business (self employment taxes).

    1.Can i file all 3 1099-misc under my wife's publishing company(startup sole-prop under her name)(it would also cut myself employment tax from 4 seperate to 2 seperate taxes).
    2.Can I write off equipment i bought in previous years and used to make these recordings in order to decrease my tax bill.
    3.I'm afraid that the irs may see this as a hobby and not let me write off my instruments that I have purchased in previous years.

    I keep everything 100% legal and it is a real pain in the a$$.
     
  2. gene gls

    gene gls LawnSite Gold Member
    Posts: 3,209

    There comes a time when you reach the point of business growth that you need a registered CPA. They will know all the little tricks to keep your head above water. My guy has saved me lots of dollars over the years.
     
  3. illday

    illday LawnSite Member
    Posts: 89

    yea, i guess it about that time. thanks for the response
     
  4. jeffscap

    jeffscap LawnSite Member
    Posts: 155

    I'm sure you can put all three 1099's in one pile ,you will probably have to file an addendum for the equipment, get yourself a good cpa thats also deductible.:)
     
  5. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    Can you have an employee paid with 1099 and still offer/include Health benefits since they are not technically an "hourly employee"?
     
  6. jeffscap

    jeffscap LawnSite Member
    Posts: 155

    My question to you is, Why would you want to. If your paying on a 1099 the recipient has to carry his or her own insurance anyway.:)
     
  7. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    Your right, guess I could just do that and add it to the 1099 at the end of the year but our HI discount only applies to employees.
     

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