how to report a one time consulting fee

[pgrothaus]

Last year, I was served a subpoena for any documents I might have pertaining to a patent infringement suit. I had worked for a company that no longer exist but whose assets were bought by a major pharmaceutical company. This company paid me a fee ($4800) for the time I spent finding these documents. They sent me a 1099 misc with the money reported in box 7. Do I report this as business income (Sch C) or as other income?

[DaveF1006]

i would report this on a Schedule C since it was a fee for a service you performed for the pharmaceutical company. The good thing about this is you can write any expenses incurred while researching these assets.

[pgrothaus]

Thanks for the answer but this is what confuses me. To be a qualified business, the activity must be a "trade or business with the intent of making a profit as well as with regularity and continuity". 

I am not engaged in a business with regularity and continuity. This was a one off instance.

[MaryK4]

If it is reported as BOX 7 NONEMPLOYEE COMPENSATION, this usually means the IRS is expecting Self-Employment Tax.  If you include it as Other Income, you will not be able to exclude any expenses.

@pgrothaus