customer trying to issue me a 1099

E

evil_c5

New member
in all my years, I have never had a customer try to send me a 1099 for detailing services.





am I missing something?
 
They will if they are trying to deduct the services as an expense. Its my understanding that its only for over 600$ in total services?



Cheers,

GREG
 
If you detailed his personal vehicle, sounds like he's trying to deduct it as a business expense. Doesn't sound kosher to me.



LL
 
Is it from a dealership or a regular customer for there personal car? If its a regular customer then like stated above they must be trying to right it off as an expense to there business or its a car paid for by his employer and he might be trying to have his emplyoyer pay for theupkeep of the car. Either way it sux and if you oblige you'll be paying taxes so charge them for tax as well. Or ask him whats its for and see if he'll take a receipt instead.
 
he has a collection, so over the past 5 or 6 months, I have probably done ~2000 dollars of work for him, but it was my understanding that this was work on the side because he didnt want to pay for a shop to do it.



im sure hes trying to write it off because his wife always paid me with a company check.
 
evil_c5 said:
he has a collection, so over the past 5 or 6 months, I have probably done ~2000 dollars of work for him, but it was my understanding that this was work on the side because he didnt want to pay for a shop to do it.



im sure hes trying to write it off because his wife always paid me with a company check.
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Yeah a business has to file a 1099 for every contractor that they pay. So if they wrote it on a company check that's what they need to do.



A buddy of mine owns an office cleaning business and all of his workers are hired as contract workers so he just has to file a 1099 for each employee I think.
 
I work for the Internal Revenue doing audits and many people try to claim this as an EBE employee business expense. Only say if he owed a funeral home and had to have the hearse and limos cleaned for funerals would be a deductible expense but for any personal use vehicle used for personal use is not deductible.
 
I was just researching and he didnt ask me to fill out a w9, if he would have, I probably would have passed on the work.
 
bigfish528 said:
I work for the Internal Revenue doing audits and many people try to claim this as an EBE employee business expense. Only say if he owed a funeral home and had to have the hearse and limos cleaned for funerals would be a deductible expense but for any personal use vehicle used for personal use is not deductible.
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he owns a building maintenance company, so im pretty sure his muscle car collection doesn't fit into that.
 
bigfish528 said:
I work for the Internal Revenue doing audits and many people try to claim this as an EBE employee business expense. Only say if he owed a funeral home and had to have the hearse and limos cleaned for funerals would be a deductible expense but for any personal use vehicle used for personal use is not deductible.
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As a tax accountant I can also verify that this is true. Personal vehicle = personal expense and not deductible.
 
bigfish528 said:
I work for the Internal Revenue doing audits and many people try to claim this as an EBE employee business expense. Only say if he owed a funeral home and had to have the hearse and limos cleaned for funerals would be a deductible expense but for any personal use vehicle used for personal use is not deductible.
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I have some client that are real estate brokers and deduct detailing as a business expense to taking clients around, you're saying this can't happen? So if the vehicle is for company use, its okay?



So keeping my car cleaned for my detailing business I cannot deduct product used? I know I cannot deduct my actual rate.
 
whats the problem with that? you guys all pay your taxes right? lol. i was suprised how much more money i started making when i acted like a business, and paid my taxes. plus you can deduct all your chemicals and tools anyways.
 
Greg Nichols said:
I have some client that are real estate brokers and deduct detailing as a business expense to taking clients around, you're saying this can't happen? So if the vehicle is for company use, its okay?



So keeping my car cleaned for my detailing business I cannot deduct product used? I know I cannot deduct my actual rate.
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if the client is using his/her own vehicle and has it detailed for appearance in order to take clients to look at houses he/she can only have this expense deducted if it is on his/her employer's reimbursement policy stating that having a detailed car for clients is required as a condition of employment. And if it is on the reimbursement policy then it must state if this expense is reimbursed or not then if not he/she can claim the expense.



For you you can claim your miles that you travel for your business and any upkeep that goes along with that like oil changes, inspections car washes so you will be able to deduct the detailing supplies because it is required for the type of work that you do. Any ordinary and necessary expense can be deducted As long as you are a credited business meaning having a business license.
 
evil_c5 said:
I was just researching and he didnt ask me to fill out a w9, if he would have, I probably would have passed on the work.
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I'm not following the logic of this. Do you charge such a low rate that you can't afford to pay taxes on your extra income? I can see you not wanting to pay taxes, I just don't get why you would pass on the job if you had to pay taxes, or if you're really anti-tax, asking to be paid more for the job to make up for it.



evil_c5 said:
im not gonna worry about it, without a SSN or TID, he really cant do too much
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Likely he's not going to let it go, if he's got $2000 in company expenses that he has to justify. I hope you don't lose the customer.
 
An organized business, meaning one that is incorporated, SubS, LLC, whatever, always files a W9, and that eliminates the need for a 1099 being issued.



The IRS doesn't need your SSN. He will report you as the payee, including your name, address and zip code. They will find you.
 
I stopped trying to do this as a side business when my son was born 2 years ago. this was the only job that I took this year.



my income already puts me in the highest tax bracket, so if I were to take the job a job and pay the taxes on it as a real business, it would cost 30-40 percent more. i was trying to do the guy a favor and not charge him the 50-60 dollars an hour for paint correction.
 
evil_c5 said:
I was just researching and he didnt ask me to fill out a w9, if he would have, I probably would have passed on the work.
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I've got a few W-9s on file with companies I've done detailing for but don't think I've gone over $600 in a calender year with any of them. They have me fill them out "just in case". Never had anyone do that with a privately owned vehicle, even if they pay with company checks.
 
Setec Astronomy said:
Likely he's not going to let it go, if he's got $2000 in company expenses that he has to justify. I hope you don't lose the customer.
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blackfire said:
The IRS doesn't need your SSN. He will report you as the payee, including your name, address and zip code. They will find you.
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Agreed and agreed.



I'm with Scott on this too. I get a half dozen or more each year and even send a few out myself- just a pitfall of running a legitimate business. It shouldn't be too difficult for you to find an equal amount of business expenses of your own, with the right tax representative. They are worth their weight....
 
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