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Mod note: 2 posts hidden as O/T. Please stick to the OP's topic of 1099 reporting and if non-issuance makes that expenditure nondeductible for tax purposes. Anyone wanting to discuss accepting or paying for services in cash/check v. plastic or any other side issue should start a separate topic of its own.

Please, folks, try to stay on the topic and remember that the original poster is a tax preparer awaiting an answer to solve his or her problem in order to finish a project or return, and it is not helpful to that person to receive answers that derail topics sideways into other areas with anecdotal stories. If you don't have the technical answer, that's OK, please scroll on by and hopefully someone else will chime in with the answer. If a topic or post jogs a memory or brings a related question to mind, that's OK too, but PLEASE START A SEPARATE TOPIC. If you take the time to read your typed response before clicking "submit" and the post swerves off course with something that sounds like "this reminds me of when my spouse's second cousin's brother's wife's stepchild once removed brushed her pet rabbit..." then please rethink your answer. Obviously, this doesn't apply to the occasional nontax-related topics that are posted in fun.

Yes, just a shifting of assets per the divorce settlement, not any sort of sale or gain/loss to report at all.

@jklcpa You're a genius! Yes there is! For anyone looking for this in the future, the rabbit hole map is: 1120S, pg 4, 17d (yes the greyed out field) and JUMP to Linked Field which takes you to: Line 17d, Sch K (1120S) - Other Items & Amts. Scroll to AC, and click the JUMP to Linked Field which takes you to: Line 13 (1120S) - Interest Expense. Depending on how you answer the schedule B question, the "IRS Sec 448 Gross Receipts Test equation is explained. For the record, it's the preceeding three year average fo gross receipts OR the CY gross receipts. Thank you @jklcpa !!

If not the sole residence, the use of a motorhome for business falls under the interpretation of 280A(f) like any other 2nd residence would. Here's an older post from Bradford Tax Institute with its discussion on this matter that some here may find interesting or useful: https://bradfordtaxinstitute.com/Content/IRS-Audit-Questions-Motorhome-Use.aspx

Moderator note: Responses pertaining to use of motorhome/2nd residence for business is a different subject completely than was asked and has been moved to its own separate topic.

Is there a schedule for details of other items to allocate to shareholders that relates to 1120S pg 4, Schedule K, Line 17d? If not, when you add all of the amounts on the K-1s for that item, it doesn't add up to the amount of net sales on line 1 of the 1120S? Is it possible that there are special allocation %s for this item being carried over from the prior year? Or did you hit an input line in error that is having some effect?

Link to a Drake KB that should help; it describes the calculation and when and why it is needed. https://drakesoftware.com/Site/Browse/17113/1120S-Line-17-Code-AC-Change-Drake20-and-future#:~:text=Line 17%2C code AC on,for Section 448(c).

How would you know if the contractor has business cards or a state listing? If a client's records show payment to a plumber, say, do you look up the state records and call the guy for a card? I can see denying the deduction when a client says their nephew helps out once in a while and gets paid under the table.

Not all smaller contractors accept credit cards, so it could become an issue. The times that I have had business cards and business licensing come up is during Unemployment Tax Audits and Workers Compensation Audits, when the Auditor is looking for workers being treated as contractors when they really should on the payroll as employees.

I am not sure what the business cards and listed as a business in the state where the do business has to do with this. If they are a contractor and are not incorporated, I would expect a 1099 NEC for amounts over $600. If they don't have business cards or otherwise show that they are a business, then perhaps they should have received a W-2 for all the amounts they received and not be considered a contractor. Is that the point that you are trying to make? I do agree that it is not my job to allow or disallow deductions but to point out what they need to do to be in compliance with the law.

You sure have. Welcome back.

Business mileage on the island would be a biz deduction, not all mileage. Be careful about mileage that tries to turn personal mileage into business mileage. Does their mileage log support their biz miles? Ask lots of questions.

For 2023, the widow can't file as QSS because the TP died during that year. Her choices for 2023 are MFS or MFJ, but joint is only available with permission from executor of his estate. I would suggest she continue as MFS so not to open up the possibility of her becoming liable for his tax debts. QSS is available to a widow that meets the requirements in the two tax years subsequent to TP's year of death: 2024 & 2025. I have never dealt with CNC status and do not know if that would remove the protection from TP's tax debts that MFS has afforded her since he is now deceased. His tax debt would become a debt of his estate, and any assets should be used to satisfy that debt before she gets anything.