I recieved a 1099-misc for selling a mower tractor to a sheriff's department. This was just a personal sale, not business. What do I do since it was not income for services?

laceyb52 — Thu, 06 Jun 2019 09:45:57 GMT

This was just a personal tangible item I had sitting in my yard for sale. I received a 1099-misc from the county for selling them my old mowing tractor. I did not work for them, perform any services, etc. How do I have to report this on my taxes. It was not income for services performed. I actually sold it for $8000 which was a loss since I bought it in 2015 for $14000.

What box # on the 1099 was the $ in?

Hal_Al — Thu, 06 Jun 2019 09:45:58 GMT

What box # on the 1099 was the $ in?

Box 7

laceyb52 — Thu, 06 Jun 2019 09:46:00 GMT

Box 7

I'd ask the sheriff's office to send into the IRS a corre...

Cattlerancher — Thu, 06 Jun 2019 09:46:01 GMT

I'd ask the sheriff's office to send into the IRS a corrected/revised 1099-misc. It appears to be issued in error. Federal, State and SE tax applies to box 7.

If you received an erroneous 1099-Misc, you have several...

Hal_Al — Thu, 06 Jun 2019 09:46:03 GMT

If you received an erroneous 1099-Misc, you have several choices:

1. Ideally, you get a corrected 1099-misc from the payer

2. Don't report it on your return. Attach a copy of the 1099 and a statement explaining the circumstances. You can't e-file. From the IRS instructions for form 1099-Misc: Form 1099-MISC incorrect? If this form is incorrect or has been issued in error, contact the payer. If you cannot get this form corrected, attach an explanation to your tax return and report your income correctly.

3. Report the Income on schedule C and take a deduction under other expenses, call it something like "nominee recipient adjustment". More properly you should call it Cost of goods sold, but that's harder to enter in TT**.

4. Report the income as misc line 21 income (enter in TurboTax at the 1099-Misc screen) . Then enter a line 21 deduction, for the same amount. In TurboTax (TT), enter at:
- Federal Taxes tab
- Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other reportable income - Enter the number with a minus sign (-) in front. Briefly explain at description. I would say "Cost basis if 1099-Misc"

5. (this option is not available with online TT) Report the income as misc line 21 (of form 1040) income. Then take a line 36 deduction. In the forms mode, open form 1040. Scroll down to the "Other adjustments to income" "smart worksheet" and enter your deduction in line H. Type in…."expenses of 1099-Misc income" or "nominee recipient adjustment to 1099-Misc income"

6. Do nothing and hope you can explain it away when & if the IRS contacts you

**To enter cost of goods sold (COGS): when asked if you have inventory answer that you Buy and immediately resell goods. When asked how you account for inventory answer lower of cost or market value. For beginning inventory for 2016, enter the sale amount of the tractor/mower ($8000). For ending inventory enter 0. That will make your profit 0.

topic I recieved a 1099-misc for selling a mower tractor to a sheriff's department. This was just a personal sale, not business. What do I do since it was not income for services? in Get your taxes done using TurboTax

I recieved a 1099-misc for selling a mower tractor to a sheriff's department. This was just a personal sale, not business. What do I do since it was not income for services?

What box # on the 1099 was the $ in?

Box 7

I'd ask the sheriff's office to send into the IRS a corre...

If you received an erroneous 1099-Misc, you have several...