Schedule C deductions


C

Cliff Powell

My clent, an independent contractor, worked for a employer away from
home city. She received 1099-MISC for $80K and then a corrected 1099-
MISC for $100K. There is NO documented reason for increase but she
presumed it to cover reimbursement. She did have auto expense which was
deducted. Lodging for her was provided directly to hotel by her client.
She did not spend anything herself. I am following:

"Code section 162a  - An individual who has a temporary work assignment
=3Faway from home=3F  can deduct the travel expenses (mileage 48.5 cents),
meals and lodging while away from home on business."

She believes that she can deduct the lodging expense even though it was
not paid by her, but rather for her. The increase on the 1099-MISC, if
it is reimbursement, is far more than auto expenses. Why would her
client pay the lodging fee and then provide their client with an
identical amount on the 1099-MISC. She has a CPA realative who agrees
with her. Your commnents most appreciated.

Cliffp
 
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P

Paul Thomas, CPA

Cliff Powell said:
My clent, an independent contractor, worked for a employer away from
home city. She received 1099-MISC for $80K and then a corrected 1099-
MISC for $100K. There is NO documented reason for increase but she
presumed it to cover reimbursement. She did have auto expense which was
deducted. Lodging for her was provided directly to hotel by her client.
She did not spend anything herself. I am following:

"Code section 162a - An individual who has a temporary work assignment
=3Faway from home=3F can deduct the travel expenses (mileage 48.5 cents),
meals and lodging while away from home on business."

She believes that she can deduct the lodging expense even though it was
not paid by her, but rather for her. The increase on the 1099-MISC, if
it is reimbursement, is far more than auto expenses. Why would her
client pay the lodging fee and then provide their client with an
identical amount on the 1099-MISC. She has a CPA realative who agrees
with her. Your commnents most appreciated.




Conversely, she could report the amount directly received by her, and deduct
the expenses she directly paid.

She's guessing on the lodging expenses unless she can get an accounting of
the 1099 from the employer.

Since there's probably no rhyme or reason for the 1099 amount, then follow
her provable numbers and deal with IRS when they send a notice.
 
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H

Haskel LaPort

Cliff Powell said:
My clent, an independent contractor, worked for a employer away from
home city. She received 1099-MISC for $80K and then a corrected 1099-
MISC for $100K. There is NO documented reason for increase but she
presumed it to cover reimbursement. She did have auto expense which was
deducted. Lodging for her was provided directly to hotel by her client.
She did not spend anything herself. I am following:

"Code section 162a - An individual who has a temporary work assignment
=3Faway from home=3F can deduct the travel expenses (mileage 48.5 cents),
meals and lodging while away from home on business."

She believes that she can deduct the lodging expense even though it was
not paid by her, but rather for her. The increase on the 1099-MISC, if
it is reimbursement, is far more than auto expenses. Why would her
client pay the lodging fee and then provide their client with an
identical amount on the 1099-MISC. She has a CPA realative who agrees
with her. Your commnents most appreciated.

Why guess? Get the facts from her client first then proceed.
 

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