Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I'm a general contractor doing a lot of work local property…

Customer Question
I'm a general contractor doing...
I'm a general contractor doing a lot of work for a local property management company. I have to purchase all supplies to complete their work, then submit for reimbursement along with my labor charges. Problem is, they include the reimbursement on the 1099-misc form every year. How and where is the best place to enter my direct expenses so it becomes a credit against what I owe, not just a deduction? I never make a profit on the materials; I bill them the actual amount.
Thanks
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 8 minutes by:
2/15/2016
Tax Professional: Tax.appeal.168, Tax Accountant replied 2 years ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,795
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified

Q: How and where is the best place to enter my direct expenses so it becomes a credit against what I owe, not just a deduction?

A: Since the reimbursement amount is included with the amount that you are paid, the best thing for you to do is subtract the amount of the reimbursement, which will reduce your taxable income. On Line 2 of the Schedule C you enter the amount of the portion of the 1099-Misc that is the reimbursement portion. Line 2 is subtracted from Line 1 Gross receipts. You should not include reimbursements in gross receipts because you pay self employment tax on the amount shown as gross receipts. I don't think you want to pay self-employment tax on money that is truly not income. For all expenses that you have not been reimbursed for, you can those as Other Expenses. You cannot list deductions that you have been reimbursed for.

Let me know if I can be of further assistance to you regarding this matter.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,795
4,795 Satisfied Customers
Experience: 3+ decades of varied tax industry exp. Tax Biz owner

Tax.appeal.168 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:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

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

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I offer IT services to a small business as a side job. He
I offer IT services to a small business as a side job. He provides me a 1099 to report my income. Sometimes I buy hardware on his behalf because he doesn't know what to buy. I list this on the invoice… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I signed a contract for a company to supply install palett
I signed a contract for a company to supply install palett racking in pa They bought the rack from a co in Tennessee They are charging me tax on the labor to install? And also charging tax on their pr… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I recently did some work for a family member at the end of
I recently did some work for a family member at the end of 2016. He is a subcontractor and does remodeling. On the jobs that I worked on I also spent fairly large amounts of money on partially funding… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
We recently built our own home using a Construction Loan through
We recently built our own home using a Construction Loan through FirstBank. While we used contractors to do most of the work, we purchased a lot of materials for the home using our Construction Loan a… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Question about the new NC sales and use tax that started
question about the new NC sales and use tax that started March 1st 2016 I am a sole prop of a plumbing business. when I get a call for a job , I go out give them a total price for the job , I then go … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I have a sub contractor who wants all the checks that I
I have a sub contractor who wants all the checks that I wrote for him i supplied 1099 do I have to supply the checks.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If I buy material job that I am doing customer, I would
If I buy material for a job that I am doing for a customer, I would charge the customer for the cost of the material as well as the tax I paid when I purchased the material. If my men use that materia… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a small business and I have contracted with some providers.
I have a small business and I have contracted with some providers. I would like to offer an tuition reimbursement to the independent contractors who have been working with me for over a year. Is that … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I own a commercial millwork company in Pennsylvania and have
I own a commercial millwork company in Pennsylvania and have been charging my customers sales tax on freight and installation labor. In turn, I've been submitting that sales tax to the state treasury.… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Regarding FL sales tax, I am designer and I typically use a
Regarding FL sales tax, I am designer and I typically use a fabricator/installer to build and install custom closets per my designs. In reply to a recent RFP, one fabricator has argued that he must co… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,795 satisfied customers
If I am in the service business (heating & air installation
If I am in the service business (heating & air installation & repair) are tthe parts,new units, or the service I provide itself subject to any type of sales tax? Business will mainly operate in New Je… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My non-profit sports club has an independent contractor book
My non-profit sports club has an independent contractor book our hotels for our teams, puts the charges on their credit card, and then gives us an invoice for those same charges. We then pay that invo… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
i am a contractor located in allegheny county, pennsylvania.
i am a contractor located in allegheny county, pennsylvania. the project i am working on is located in westmoreland county pennsylvania. my question is am i responsible for 7% sales tax since my offic… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
We have a charter business where he hire flight attendants
We have a charter business where he hire flight attendants whenever we have flights.. WE use them as contractors because they are available to work as employees for us on a permant basis... so they wo… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
I installed a server for a local company. I billed them for
I installed a server for a local company. I billed them for the server and labor. The w-2 they sent me included the cost of the server as well as the labor. Do I get a new w-2 or is there a way to ded… read more
Jacy
Jacy
Bachelor's Degree
567 satisfied customers
I am a single member Llc contractor in my first year of business.
I am a single member Llc contractor in my first year of business. I pay sales tax to all but one vendor for material. Quarterly I pay the sales tax due on the purchases from the out of state vendor wh… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
On building a new commercial building, what types of labor
On building a new commercial building, what types of labor are subject to New York State Sales and Use Tax?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I charged a blanket 6% sales tax to my commercial clients this
I charged a blanket 6% sales tax to my commercial clients this past year, 2009, which was my first year doing carpentry and general contracting for commercial clients. I did not subtract materials cos… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 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