Foreign Exchange Students

[Dave T]

Client serves as a liason for foreign students, taking them to appointments, school contacts etc. In addition they house two of the students providing room and board.

Client receives three 1099 Misc. from three different sponsoring organizations. Total involved is approx. $10K.

Here are the questions I have regarding this:

1. Would the one 1099 from the organization that is sponsoring the students in their home go on a Sch E and the other two on Sch. C, or all three on Sch. C or is it all line 20 - Other Income, or some combination thereof?

2. Aside from mileage, client didn't track any other expenses. Is there some type of per diem meal allowance that could be used simiilar to that used by Child Care providers?

3. What about utilities and depreciation for the space used?

Thanks for all the assistnace on this subject as well as for the wealth of knowledge that is conveyed on a daily basis on this board.

Dave T

[jainen]

>>utilities and depreciation for the space used<<

It sounds like there are two issues. First,they are hosting foreign exchange students, presumably not for-profit. If high school or less, they can deduct up to 50 dollars per month as a charitable contribution. Anything else, including college students, is personal. See Pub 526 for details.

They also have a part time job as a laison. All the 1099-MISC income goes on Schedule C. They can't document any expenses except mileage, which is probably almost the only expense anyway.