1099 misc

[ljwalters]

Client digs swimming pools. He paid a private party to dump the dirt on his property. What box do you report this expense, box 3 other income or box 7 nonemployee compensatin.

The amount was 900 dollars.

[mcb39]

I would use box 7........is the private party in the business of excavating or something to that effect?

[ljwalters]

I would use box 7........is the private party in the business of excavating or something to that effect?

No the client does the excavating the private party just supplied the land but is not in the business for this purpose.

[Terry D EA]

No the client does the excavating the private party just supplied the land but is not in the business for this purpose.

If I'm understanding this correctly, your client who digs swimming pools paid an individual to deliver the dirt he dug to "his" (The pool digger) property? Sounds like this is a personal expense and not business related. Now if I missed it and during the normal course of pool digging, your client pays to have the dirt removed from the work site, and this is a normal expense that occurs during pool digging, then where it was delivered to is irrelevent and the private party provided a service who is a sub contractor, then he would put this income on line 7.

[taxit]

I believe the client who is digging the pool is hauling the soil to the other individuals property & dumping the soil. So he is paying for a place to dump the soil. It would be a business deduction. As far as a 1099, the receiver of the of the soil is not providing a service, so if they were to issue a 1099 I think it would go on other income.

[BulldogTom]

I second what Terry said.

Tom

Lodi, CA

[mcb39]

Sounds to me like this individual is taking the dirt for fill for his yard and getting paid to take it. I would always rather put something like this on Line 21 with an explaination; rather than line 7 which will confuse the IRS. We sure are making some mountains out of molehills (I mean swimming holes) this year.

[OldJack]

Sounds to me like this individual is taking the dirt for fill for his yard and getting paid to take it. I would always rather put something like this on Line 21 with an explaination; rather than line 7 which will confuse the IRS. We sure are making some mountains out of molehills (I mean swimming holes) this year.

The 1099Misc should have box 3 reporting the payment which the person would report the amount on 1040 line 21.

[Terry D EA]

After a second look, it does appear the person who got paid for the dirt provided the land. If that's the case, the I agree with OldJack and the others that this should be put in Box 3 and on line 21 on the 1040. Sometimes we read things too fast

[kcjenkins]

I too would put it in Box 3, since he's being paid what is closer to rent than anything else. It's not actually rent, but it's not for any services either, so putting it in box 7 would just cause problems for the recipient.