Discussion:Completed Contract Method and 1099
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(Difference between revisions)
| Revision as of 13:39, 14 March 2008 RoyDaleOne (Talk | contribs) (Funny, POC metho) ← Previous diff |
Current revision Vickytown (Talk | contribs) (My client was wo) |
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Current revision
Discussion Forum Index --> Tax Questions --> Completed Contract Method and 1099
| 13 March 2008 | |
| Small contractor client uses completed contract method for taxes. Only had two jobs in 2007 - one completed and one partially completed. Client received 1099's for both jobs. The partially completed job will not reflect the income on 2007 tax return as reported on the 1099. If I don't report all income per 1099's I'm sure the return will kick out - Anyone else had this problem? If so, how did you resolve it? Thanks for any help. | |
RoyDaleOne (talk|edits) said: | 14 March 2008 |
| I guess this a Schedule C filer.
When the inquiry from the IRS write them a letter explained that you have no control over the 1099's, however your client uses CC as allowed by law. You did compute POC for AMT. | |
| 14 March 2008 | |
| Could you list "Completed Contract Method" in "Other Expenses" to zero out the income? | |
| 14 March 2008 | |
| I thought about doing something like that in order to circumvent an inquiry - but I wasn't sure if that would cause more trouble in the long run. The client is an LLC, filing a 1065 (2 members). Since this is first year, it may be simpler to do POC since it has to be done for AMT anyway! | |
RoyDaleOne (talk|edits) said: | 14 March 2008 |
| Funny, POC method will not tie to 1099's either.
Why did the contractor receive the 1099's in the first place? | |
| 14 March 2008 | |
| My client was working as a subcontractor for general contractors. | |
