Discussion:Other Income
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Other Income
| 24 November 2005 | |
| Have a client who won a classic car through a radio station contest. The radio station has told her she needs to file a "Gift Tax" return and I believe they are wrong. Should she not just receive a 1099 that would be shown as other income on the return? Thanks, Matt | |
| 24 November 2005 | |
| I agree that "gift tax" is wrong. But it may be the station's way of telling your client she will not receive a 1099.
Contest prizes are just "other income" on the return. | |
| 25 November 2005 | |
| I agree. Contest prizes are not "Gifts" and are not to be reported as gifts. They would be income to the recepient | |
| November 25, 2005 | |
| I have seen several 1099-MISC sent out to clients by radio station s for prizes won. They have reported it as other income. So it would be taxable. | |
| 26 November 2005 | |
IRS Publication 525 says:
Line 21 is for "other income". | |
| 14 December 2005 | |
| Fair market value is often lower than the 1099 amount as reported. I show total 1099 amount and the on next line back out the excess by stating " excess value of 1099 above over FMV" | |
| 14 December 2005 | |
| They are good at over stating the value so they then will have a larger tax deduction. | |
Nancyshoemake (talk|edits) said: | 27 January 2008 |
| I have a client that owns an airplane and rents a hangar. All of the airplane owners were placed in a draw and my client won the "rights" to build a hangar on the land. Since the land is government owned, they can not own the land but can place a hangar on "rented land". Another airplane owner has paid my client $10,000 to have this "right". I am assuming this is taxable income.....but can anyone help me out regarding where it is placed. This is not a gift, it is not earned income.....what would this be classified as?
Thanks so much | |
Nancyshoemake (talk|edits) said: | 27 January 2008 |
| I have a client that owns an airplane and rents a hangar. All of the airplane owners were placed in a draw and my client won the "rights" to build a hangar on the land. Since the land is government owned, they can not own the land but can place a hangar on "rented land". Another airplane owner has paid my client $10,000 to have this "right". I am assuming this is taxable income.....but can anyone help me out regarding where it is placed. This is not a gift, it is not earned income.....what would this be classified as?
Thanks so much | |
Death&Taxes (talk|edits) said: | 27 January 2008 |
| You might type 'Sale of Rights' into the search block. I see three interesting discussions but am not sure if any apply here. Yet read Riley on the one. | |
PostingFromWork (talk|edits) said: | 27 January 2008 |
| If the right was transferred entirely and permanently, I'm going to say capital gain, as long as the holding period was met. | |
Gamediva2112 (talk|edits) said: | 4 February 2008 |
| Two of the gentlemen I work with at an independant car dealership have earned advanced degrees through an auto manufacturers training program. For their efforts they were rewarded with trips to Las Vegas to attend an awards ceremony. They were shocked to receive 1099's for $2000.00. They have no receipts because the manufacturer paid for everything. They walked away with nothing but a plaque and some nice memories. What is the tax rule that allows or requires the manufacturer to 1099 these trips? Who claims the trip as an expense then? What can I tell these gentlemen to get them off the ceiling? | |
| 5 February 2008 | |
| They have no receipts because that is what the $2000 is for: FMV of the meals and plane tix and hotel. They got a 'prize'; a trip to Vegas. There is nothing to deduct against it. | |
To join in on this discussion, you must first
log in.
