Actions
Forum Thread Details
  • Replies 26 replies
  • Subscribers 637 subscribers
  • Views 1413 views
  • Users 0 members are here
Related

Being taxed ~$2,000.00 for a RoadTest.

jkutzsch

Curious from the experience of others here.  I participated in a roadtest where it looks like the product is now going to cost me around $2,000.00 from "self-employed" taxes.  Needless to say this is unplanned.  Do other RoadTest participants in the US have suggestions on this?  Is this a common expected event?  My wife is pretty much saying my budget for anything is now blown.

Parents

  • I asked around and I was told that perhaps a 1099-MISC form is not the correct form to be used for what is being accomplished.  It sounds like what is trying to be done now is stating that E14 is bartering with a Member for services by providing a product.  No cash/monies are being exchanged which would be what the 1099-MISC form would be used for.  Instead a 1099b form would be used for bartering. 

     

    https://www.irs.gov/businesses/small-businesses-self-employed/barter-exchanges

     

    https://www.irs.gov/pub/irs-pdf/i1099b.pdf

     

    So confusing.  For instance the "Fair Market Value" for the 1099b, is that the retail value or something more appropriate.  And does a 1099b change the amount I owe, don't know.  1099-MISC better or worse then a 1099b, don't know.  :-)

     

    Luckily I live in a rural place, I was told that potentially I could have had additional municipal taxes added as well.

Reply

  • I asked around and I was told that perhaps a 1099-MISC form is not the correct form to be used for what is being accomplished.  It sounds like what is trying to be done now is stating that E14 is bartering with a Member for services by providing a product.  No cash/monies are being exchanged which would be what the 1099-MISC form would be used for.  Instead a 1099b form would be used for bartering. 

     

    https://www.irs.gov/businesses/small-businesses-self-employed/barter-exchanges

     

    https://www.irs.gov/pub/irs-pdf/i1099b.pdf

     

    So confusing.  For instance the "Fair Market Value" for the 1099b, is that the retail value or something more appropriate.  And does a 1099b change the amount I owe, don't know.  1099-MISC better or worse then a 1099b, don't know.  :-)

     

    Luckily I live in a rural place, I was told that potentially I could have had additional municipal taxes added as well.

Children
No Data