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Jason M. Tyra, CPA
Jason M. Tyra, CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 177
Experience:  Principal at Jason M. Tyra, CPA, PLLC
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I have a client who is in the cattle and oil business, He has rece

Customer Question

Hi, I have a client who is in the cattle and oil business, He has received two 1099's . One has 500,some thousand dollars for the cattle and oil, but there is also an entry for 58,000 listed in Other Income. My question is: is the other income subject to SS & MC taxes as well.
he has told me the 58,,000 is for water
Submitted: 7 months ago.
Category: Tax
Expert:  Jason M. Tyra, CPA replied 7 months ago.
Hi Sharon:Whether the "other income" amount should be reported as part of the taxpayer's earnings from self employment (i.e. on Schedule C) or can appear on the "other income" line of Form 1040 depends on whether the taxpayer is regularly in the trade or business of selling water. If this was a one-off thing, then probably he isn't. If selling water is a regular and continuous part of his business, then it would be part of his self-employment income.
Customer: replied 7 months ago.

i guess it really doesn't matter how it is reported since he has paid his limit on self employment (100,100) for a 2012 tax return and his net income was well over 400,000. which we did report on his schedule F

since this is income for oil & Cattle.

Expert:  Jason M. Tyra, CPA replied 7 months ago.
Ok. Is there anything else I can do for you here?
Customer: replied 7 months ago.

no Thanks

Expert:  Jason M. Tyra, CPA replied 7 months ago.
Ok. If this was helpful, then please don't forget to rate.