Gifts & Prizes?

It's my understanding from my accountant is that you have to declare all monies even if it is lower than $600 (check or cash), in the case of a prize I just won $1,000 for the most new business revenue for the 1st quarter. The company is paying this in my payroll, thus I will be taxed on it.

If you received the item as a gift, some companies will issue a 1099 and some won't however that's not an excuse not to declare the item with the IRS.

One of the hidden items (this is what I heard), is that when Obamacare is in full effect all companies will have to issue 1099's for any amount given to that person even if it is less than $600.

On the other hand, if you received it as a gift and no 1099 was issued I would find it hard to declare that to the IRS. Hope this helps.

Thanks for the input. Sounds like you were rocking the house in the 1st Q. Great Job!

We have a contest from Oct-Dec 2012 for most MFP placed and I came it 1st with 174 and was one of a handful that won an IPad. Then at the end of 1st Q 2013 I also won a IPad mini. Soon will be leaving for Puerto Rico for Presidents Club.

What they did is added the value of the IPads to payroll then the rep had to go out an purchase. Do you agree that the rep should pay sales tax? Really that would be double taxed for an item that was suppose to be a gift.

These should have been sent directly to the rep then there would be no issue with sales tax. Then they could place on wages or 1099.

From what I can remember any 1099 that is less than $600 does not have to be declared. That is why someone is trying to switch that and I do not think it has anything to do with Obamacare.

You get a 1099 for things like points plus, awards and trips.

Caveat - Consult your tax advisor. But if I "won" one but had to buy it myself and funds were included in my "wages" (thus taxed on W-2)it would automatically become an employee business expense (IRS form 2106) since it was not provided by my employer. I am not a tax advisor but in 32 years selling I've never been questioned by IRS.

I've always had a beef that we can't deduct our dry cleaning bills. I gotta spend at least $100 bucks a month to look good

Start wearing shirts branded with your company's logo. At that point, it is a uniform, plus you could probably launder them at home. There's some grey area when it comes to salespeople deducting clothing. Could I wear dress slack, shirts & dress shoes outside of work? Yes. Do I? No.

And even with that, you fail miserably.

quote:

Originally posted by Art Post:
I've always had a beef that we can't deduct our dry cleaning bills. I gotta spend at least $100 bucks a month to look good

Someone spills their lunch on their suits more than me!

quote:

Originally posted by Kiwispike:

quote:

Originally posted by Art Post:
I've always had a beef that we can't deduct our dry cleaning bills. I gotta spend at least $100 bucks a month to look good

Someone spills their lunch on their suits more than me!

and Dinner!