I'm wondering if anyone knows how to do this. I have a client who is the president of a corporation. The corporation issued a 1099 for consultation services. Do I fill out a Schedule C with all the expenses even though the client is also the president of the corporation?
you have to be careful on this one. Is it a C corp or S corp? If a C corp issues a 1099 it may be a scheme to change W-2 income into Sch C that would allow these certain expenses to be counted above the line and off Sch A and also saving FICA tax. If it is an S corp the expenses could have been put on the supplemental business expense worksheet and get the same result. Isn't it the duty of the president of a corporation as an employee to provide whatever consulting is necessary for the success of the corporation?
This sounds like a C corp and he is trying to get more benefit from office in the home on Sch C instead of Sch A.
is he related to Madoff?????
