How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lane Your Own Question

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4024
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

I have a salvage business. I am paying someone to deliver a

Resolved Question:

I have a salvage business. I am paying someone to deliver a product ($2500) who does not have a business license. Do I need to have them fill out a 1099, or can I just have them fill out a receipt with their information?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

NPVAdvisor : Hi, This is just a transaction ... probably no need for the 1099 ... the reciept will show tht you have a basis of 2500 for when you sell it
NPVAdvisor : If you hold longer than a yearm it m,ay very well be a zero tax situationa (depending on your tax bracket)
NPVAdvisor : IF you haold it and sell in less than a year, the gain will ordinary income (sales price less 25000
NPVAdvisor : (sorry for the typos)
Customer: This is actually payment for delivery of a product.
NPVAdvisor : sales price less the 2500 ... long term capital gains if you hold it for a year ... ordinary income if you hold it for less than a year
NPVAdvisor : for the delivery only? or the product itself?
Customer: For delivery only. It is an airplane they are delivering
NPVAdvisor : the delivery charge is a current expense deductible against your business income
Customer: Do I need Name, address, phone included on the receipt?
NPVAdvisor : It would definitely be a best practice ... but necessary as with a 1099
NPVAdvisor : Just be sure to keep the receipt ... for an item this large
Customer: But a 1099 is not required?
NPVAdvisor : no
Customer: Great! Thank you!
NPVAdvisor : this not an ongoing service
NPVAdvisor : \but rather an incidental expense to the resalwe of the product
NPVAdvisor : a business expense
NPVAdvisor : do you sell planes repeatedly?
NPVAdvisor : this is for resale right?
Customer: No I think it is a one time deal with this particular individual. We sell parts for resale
NPVAdvisor : thats OK
NPVAdvisor : again it is part of your business
Customer: Thank you.
NPVAdvisor : if you were buying it for personal use, it would be a part of the price whch would go to basis if you ever sold it to someone else
NPVAdvisor : but here, it's simply a delivery of something you will sll for a profit
NPVAdvisor : YW
NPVAdvisor : Hi PJ, .../ just checking back in, as I never saw you come into the chat.If you wan to drill down on this further let me know. If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better. That's the only way they will pay us here HOWEVER, again, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.Thanks,Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4024
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 7 other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.

Thanks for the rating Ellen.

Again, the delivery charge here is a business expense, given your resale of parts.

Let me know if I can help further,

Lane

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.