Discussion:Welders

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Discussion Forum Index --> Tax Questions --> Welders


Bits1961 (talk|edits) said:

26 June 2007

A welder who uses his own Welding truck and tools received a 1099-misc with the income listed under "rents". Should this be put on Schedule E or Schedule C.

Kirk

KatieJ (talk|edits) said:

26 June 2007
I'd put it on Schedule C, assuming he used the equipment to provide services. Even if he rented his truck and tools to someone else to do the work, I'd still put it on Schedule C. It would be a puzzle to allocate the depreciation and other expenses between the Schedule C and Schedule E.

Pegoo (talk|edits) said:

26 June 2007
I agree. Keep it simple :P

Lhhesscpa (talk|edits) said:

26 June 2007
In general, equipment rental is a business activity subject to SE tax, so it would be reported on Sch. C. I think the classification of the payment as Rents on the 1099-MISC is incorrect. -- Larry Hess, CPA | Albuquerque, NM | Talk to me

Grumpy (talk|edits) said:

26 June 2007
Rev. Rul. 2002-35 may have some helpful info for you.

Death&Taxes (talk|edits) said:

26 June 2007
Seems to me Grumpy's RR is right on point, and you might need more facts before deciding if this 1099 should really be wages, and the expenses of same, EBE. Accountable plan seems to be the key. Seems to me also that IRS has been looking into this area very closely.

Lhhesscpa (talk|edits) said:

26 June 2007
would the original poster t specify whether the welder is an employee or independent contractor.

KatieJ (talk|edits) said:

27 June 2007
I agree, it didn't occur to me that the 1099 was received from the welder's employer. If so, Rev. Rul. 2002-35 is the answer. If the welder is an independent contractor who reports his own welding business on Schedule C, the equipment rent should go on Schedule C.


Sw (talk|edits) said:

2011-03-30

I know this is an old question, but ran across it while using the "yellow box" Welder client brought in paper from employer that quote Revenue Procedure 2002-41 that this is non-taxable to welder journeymen if perform work covered by the NPLA. There is a max of $15.00/hour "wet" or $9.00/hour "dry". Thought this might help someone that happen to have this same question.

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