Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance
This answer was rated:

My apt building has just been sold and is being converted into

a hotel. Due to...
My apt building has just been sold and is being converted into a hotel. Due to a settlement agreement between the old owner & the City - the tenants have until 2015 to remain before they have to vacate. The new owner is offering the tenants the option of buying them out to vacate early. If a tenant accepts a buyout will they be automatically issued a 1099 for the buyout price? Or is that up to the discretion of the new owner?
Show More
Show Less
Ask Your Own Finance Question
Answered in 7 minutes by:
1/1/2013
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16,592
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Verified
Thank you for your question, and thanks for using JustAnswer.com.

If the tenant accepts the buyout they will be issued a 1099 if the payment is in excess of $600. This is not at the discretion of the new owner, as the IRS wants to ensure that income is reported to them. CLICK HERE to read about the rules and requirements.

If you get a 1099 for this purpose, you would put this on line 21 of your income tax return, as "other income."

Please let me know if you need additional assistance. Thanks for using JustAnswer.com and have a happy, and safe, New Years.

** Please take a moment to rate my response as "Excellent" so that I may be compensated for assisting you today. Please let me know if my assistance was anything less than "OK Service", as I am compensated based on whether or not I have assisted you with your issue. If you need further clarifications, PLEASE WAIT TO RATE MY ANSWER UNTIL AFTER RECEIVING FOLLOW UP FROM ME. If I receive anything less than OK Service, I do not get paid. Thank you for your kind understanding in this matter. If you have difficulties rating, then simply respond stating that you are having difficulties rating and thank me for my excellent, good, or ok service and we can get the rating applied by the site*
You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.

Ask Your Own Finance Question
Customer reply replied 5 years ago

Is the owner obligated to send both the tenant & the IRS a 1099? What happens if the owner just sends the 1099 to the IRS BUT NOT to the tenant? How could the tenant find out if a 1099 was sent out to the IRS but not to him? Also, what month are 1099s normally sent out?

Thank you for your question. Whether or not you recieve the 1099 shouldn't matter, because you are supposed to claim all income on your taxes, even if no 1099 was issued. If one was issued to the IRS but not you and you did not claim the income, then the IRS would send you a letter asking you to correct the error.

You could find out if a 1099 was sent to the IRS but not you by ordering your income statement from the IRS - but this wont be available until sometime after April 15. The best route is to claim the income on line 21 of your tax return even if you do not receive a 1099.

1099s are usually sent out in January-February of each year for the previous tax year. So, if you received a 1099 for 2012 you would get it in January/February 2013.


** Please take a moment to rate my response as "Excellent" so that I may be compensated for assisting you today. Please let me know if my assistance was anything less than "OK Service", as I am compensated based on whether or not I have assisted you with your issue. If you need further clarifications, PLEASE WAIT TO RATE MY ANSWER UNTIL AFTER RECEIVING FOLLOW UP FROM ME. If I receive anything less than OK Service, I do not get paid. Thank you for your kind understanding in this matter. If you have difficulties rating, then simply respond stating that you are having difficulties rating and thank me for my excellent, good, or ok service and we can get the rating applied by the site*
You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.

Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16,592
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Verified
Megan C and 87 other Finance Specialists are ready to help you
Ask your own question now
Customer reply replied 5 years ago

If the IRS sent me a letter asking me to correct the error, would I be acessed penalities and how much would they be?

You would be assessed penalties and interest, and if you knowingly left the income off, you would be committing a criminal offense.

The underpayment penalties depend on the amount of income you left off. However since you have the income and know about having to claim it, I wouldn't leave it off.

Please let me know if you need anything additional. Thanks again for using JustAnswer.com and have a happy, and safe, New Years.

** Please take a moment to rate my response as "Excellent" so that I may be compensated for assisting you today. Please let me know if my assistance was anything less than "OK Service", as I am compensated based on whether or not I have assisted you with your issue. If you need further clarifications, PLEASE WAIT TO RATE MY ANSWER UNTIL AFTER RECEIVING FOLLOW UP FROM ME. If I receive anything less than OK Service, I do not get paid. Thank you for your kind understanding in this matter. If you have difficulties rating, then simply respond stating that you are having difficulties rating and thank me for my excellent, good, or ok service and we can get the rating applied by the site*
You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.
Ask Your Own Finance Question
Thank you for the positive rating. Please remember me the next time you have a question. Simply enter "MyVirtualCPA" in the subject of your question, and it will be routed directly to me. Thank you again for using JustAnswer
Ask Your Own Finance Question
Ask Megan C Your Own Question
Megan C
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16,592
16,592 Satisfied Customers
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Megan C is online now

A new question is answered every 9 seconds

How JustAnswer works:

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

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.WMatteson, 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.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, 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.

OrvilleHesperia, 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!!!!

AlexLos 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.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,608 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

16,592 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,920 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I run a Delaware single owner LLC operating out of Arizona.
I run a Delaware single owner LLC operating out of Arizona. We earn hundreds of thousands annually. Given the recent reform in tax code, would we save a lot of money converting to an S Corp?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,059 satisfied customers
Is the following link a Trustworthy app to invest in mutual
Is the following link a Trustworthy app to invest in mutual funds? https://robinhood.com/referral/ethanc123/?gclid=Cj0KCQiA-ebSBRC8ARIsAGuxJIrZH4jkVfJSxc_GvpqlOszZq2FrCQErIQv7hqqZLO1MuuQCFpH3fvAaAhB2E… read more
Carter McBride
Carter McBride
LLM
227 satisfied customers
I am on a non-immigrant visa and I was out of the US for
HiI am on a non-immigrant visa and I was out of the US for around 4 months in 2017. As I was out of US, I didn't have any health insurance. I am preparing my tax filing now and I want to specify the m… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am trying to add an asset to my balance sheet, and it is a
I am trying to add an asset to my balance sheet, and it is a capital lease I am trying to figure out how to show it … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I loaned $30,000 to my son to buy a truck, 11 years ago, for
I loaned $30,000 to my son to buy a truck, 11 years ago, for his business. H e had been ill and that is why it took so long to pay it back. It is now paid I full. Can I legally forgive the interest on… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I got a bonus amount and I would like to explore how I can
I got a bonus amount and I would like to explore how I can reduce my witholdings and subsequently the impact upon my tax return… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
In 2017 my grandmother transferred the deed to a property to
In 2017 my grandmother transferred the deed to a property to me for $0 in the state of North Carolina. I reside full-time in California. Do I need to file a North Carolina income tax form or pay anyth… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,770 satisfied customers
I have a business corporation. If I want to take out some
Second opinion] I have a business corporation. If I want to take out some money from the profit and write myself a check to deposit into my personal account, will I have to include that as schedule C … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am looking for someone who can help me find a Residential
I am looking for someone who can help me find a Residential Treatment Program for Reactive Attachment Disorder that takes Medicad - Preferrabley in Pennsyvania, Delaware, New Jersey area.… read more
Michael
Michael
Research Librarian
Bachelor\u0027s Degree
78 satisfied customers
If I pay 100,000 for land and then about 45000 in various
If I pay 100,000 for land and then about 45000 in various costs but have deducted thing like Loan interest, insurance, Taxes of say 40,000. What is my basis 145,000 or 145,000 minus the deducted expen… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
This is an EFIN related question! Sure, so I am an ERO that
Sure, so I am an ERO that has racked up civil penalties; which has resulted in my EFIN being deactivated How can I cure this and fix my suitability issues … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I would like to know if it's more beneficial to file as
Hello, I would like to know if it's more beneficial to file as married jointly or married separately since I am employed and my husband is self employed. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,059 satisfied customers
I have a website that sells bitcoins and takes Canadian
Hi, I have a website that sells bitcoins and takes Canadian dollars. I take a 10% commission. I was wondering if I will need to charge GST for this service. I already signed up for a GST account. The … read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
If a pass through entity (Scorp or LLc) files taxes on
If a pass through entity (Scorp or LLc) files taxes on accrual basis, do they still have to have them paid by the end of the year so they don't pay penalties?e.g. 500k net income for 2017 shown on acc… read more
Carter McBride
Carter McBride
LLM
227 satisfied customers
Move to another IRA. I currently have Rollover IRA with one
Move to another IRA. I currently have Rollover IRA with one investment company, and want to move all my funds to another investment company, and close the account with the first investment company. I … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,059 satisfied customers
When a company experiences a large number of shares sold off
When a company experiences a large number of shares sold off around 5 million out of 46,000,000 at 8.40 average per share, does this lower that companies capital? Common shares were sold… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,059 satisfied customers
I am retired and for the last few years I've done my own
I am retired and for the last few years I've done my own taxes. Pretty simple with income from an IRA, Social Security and an LLC with a rental home.I think that the new tax bill may well provide some… read more
Mark D
Mark D
Master's Degree
985 satisfied customers
If a business is filing their taxes on accrual basis and
hello. If a business is filing their taxes on accrual basis and their income statement is filed on accrual basis, what is the best way to verify the true cash flow of the business? example, window rep… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,264 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x