Friend is making me pay taxes.!!!!!!!!

[phoenixbass]

I collect antique glass. Last year while scavenging we found a piece of glass worth about $60,000. When found, we all three owned a third of the glass. Our friend decided to buy out our two shares. He gave me $20,000 and the other guy $20,000 to purchase the glass.

Recently have entered into an arguement and he is threatening to serve my friend and I with a 1099 so that we will have to pay taxes on the money he gave us.

So, here is the question. He used his business to pay us, not his personal money. Does this play into the equation ? I am assuming he wrote off the purchase as a buniess expense. How can he claim he were indpendent contractors if the purchase of the glass had NO CONNECTION to his business that paid us ?

How much of the $20,000 would I pay taxes on. At the time he gave me the money I was unemployed (pretty much had no income).

Thanks !

[Garrick]

Re: Friend is making me pay taxes.!!!!!!!!

that's a pretty incredible find. did you just accidentally come across this or do you really have an eye for that stuff?

sorry, i can't help you with your problem but one way or another, i think you have to pay taxes on it because it is part of your income. i think...

[day_for_night]

Re: Friend is making me pay taxes.!!!!!!!!

gut feel...talk to a lawyer.

[lilsensa]

Re: Friend is making me pay taxes.!!!!!!!!

I don't think that he would make any money by "making" you pay taxes..He is probably looking out for you because you actually owe taxes on the thing...No?

"Serving" you with a 1099??? I'm no accountant by any means, but to the best of my knowledge, a 1099 is used for bonus wages outside of normal hourly/salary income..

[phoenixbass]

Re: Friend is making me pay taxes.!!!!!!!!

how about capital gains tax ?? The tricky thing here is that the glass was never purchased, it was only 'found' and then sold ????

[lilsensa]

Re: Friend is making me pay taxes.!!!!!!!!

There are some accountants on here, I just can't remember who..

[Garrick]

Re: Friend is making me pay taxes.!!!!!!!!

thesightless & toasty may have some input...

[Miguel]

Re: Friend is making me pay taxes.!!!!!!!!

a 1099 is served to someone who earns commision ....
the 20000 dlrs you got came from a company account so he has to declare it .. since hes declaring a check for 20000 made out TO YOU and the third party both of you get served with the 1099 , this means IRS knows you recieved 20000 from his company ...

bro pay those taxes or youll regret you ever found that shit

[lilsensa]

Re: Friend is making me pay taxes.!!!!!!!!

^^There you have it.

[threehills]

Re: Friend is making me pay taxes.!!!!!!!!

Now that you have it...can you explain how a piece of glass you found is worth $60,000? I love seeing that kind of stuff on antique road show.

[Steve Graham]

Re: Friend is making me pay taxes.!!!!!!!!

yeah i agree, pay it, at least he has to pay a shit load too

[Steve Graham]

Re: Friend is making me pay taxes.!!!!!!!!

one thing i dont get, if he is a mate.. why did he just now let you know? its going to be a few thousand i would imagine, he could have said something when he gave you the cash so you would have been able to set some some aside.. douche IMO

[Garrick]

Re: Friend is making me pay taxes.!!!!!!!!

perhaps he may not have known either... then again, i doubt that if his company bought it.

[Steve Graham]

Re: Friend is making me pay taxes.!!!!!!!!

thats what i mean, you'd think he would know. maybe he held off so as you couldnt argue about it, lol

[thesightless]

Re: Friend is making me pay taxes.!!!!!!!!

umm... no. you are all wrong if i am assuming the proper idea here.
im the resident accountant here.

answer these so i can get an idea

1. you 3 FOUND the glass? was there a purchase price?
2. in any way, is this collecting considered a business for official purposes. (meaning state regualtion)
3. if so, are you an employee?

4. if not, there is a collective ownership in a investment assest by three persons and not a company. you were paid out in the sense of :"he bought your equity in the asset" you will be taxed on a 1040 form and in no way should you be receiving a 1099.

if his accountant is forcing the 1099 on you. call toasty or rubyraks. you'll neeed a lawyer.