Tax Prep by Deb Posted March 21, 2023 Report Share Posted March 21, 2023 My client sold his business, however the new owner does not own the type of license required and must work under my clients license who in turn has to spend a certain amount of hours per quarter with the new owner to keep the license active. He receives 1000 per month for this purpose. I feel it should be classified as self-employed income (perhaps consulting fee). Does anyone have any thoughts? Thank You in advance! 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 21, 2023 Report Share Posted March 21, 2023 Either Consulting Income on a 1099NEC or wages on a W2. If they are in CA, I would go W2 because of AB5, but that horse may have left the barn if you are looking at 2022 tax return. Tom Longview, TX 3 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted March 21, 2023 Report Share Posted March 21, 2023 I have a client in the exact same situation. He had a 1099NEC. I put in on a Sch C and charged the SE tax. It's considered a consulting fee and he does not have set hours. 2 Quote Link to comment Share on other sites More sharing options...
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