This is a complicated issue but I will try and make it as easy as I can. My husband owns his own semi-truck and he leases it on with a fuel hauling company. We have the truck set up as a business so he can have a 1099 with the company. The company he leases the truck with charges their own fees for each load, rents him the fuel trailer and provides and charges for all insurances, IFTA, plates and permits he will need to operate. They take all this payment out of his settlement checks BEFORE they send him a check with the what is left over from all the loads he hauls for the period. It was always my understanding a 1099 misc. is supposed to report the gross amount paid to the contractor and that we should be able to claim all of those expenses on taxes at the end of the year, however, it seems as though the company he is leased with has other ideas. They file his 1099 misc. with the net amount after all the expenses are taken out. I can not find anywhere online weather this is correct practice or not or if it is even legal. I feel like this is them trying to get away with something no one else is aware of. I just want to have some kind of idea before I confront them on the matter, any help with this would be amazing!
