Posted by Dave T on March 18, 2009 at 12:03:30:
Sounds like you have a co-mingling issue that lets a plaintiff pierce the corporate veil. You need to get this stuff straigntened out quickly.
Maybe you can get the housing authority to reissue the 1099s to the correct owner.
Section 8 tax question - Posted by Mike
Posted by Mike on February 15, 2009 at 14:08:38:
Hi.
I have a slight situation for my tax reporting this year. I have a 1099 from the local housing authority reporting all the income received from Section 8 in 2008. The problem is that I have a some properties in my name and several others in my corporation name. Unfortunately, I didn’t distinguish between the two when I put the new corp. properties into the section 8 program. So, everything is being reported in my name, and I presume, will have to be reported as such on my taxes.
Any suggestions on how I can break this up on my personal return vs. my corp. return?
Thanks.
Re: Section 8 tax question - Posted by AlexCO
Posted by AlexCO on February 16, 2009 at 08:13:32:
The payor (in your case, the local housing authority) reports the copy of 1099 to IRS by 3/1 (by paper) or 3/31 (by electronic transmission).
The IRS uses this information (by its computer program) to see if the income you reported on your 1040 matches the 1099 reported from your payor(s).
If there’s a large discrepancy, or if you don’t file 1040, you may receive the letter from IRS stating their findings.
I’ve seen this happened to people I knew, but not to myself.
People make mistakes. This includes your payor and/or yourself.
I would assume that you will have a chance to explain the correct fact to IRS when you receive these letter of disagreement from them.
So, I would go ahead and appropriate the income to your personal 1040 and corporate income at the rate whatever you think is correct. Of course, to backup your reasoning, you should have your “other” properties’ titles in your corp name so that you can show them, and you should also have the proofs that you had deposited incomes for those properties into the corp bank account directly even though the checks were made out to your personal name, to an IRS agent when they audit you (if it ever happens unfortunately).
I am not a CPA nor a tax attorney. But, that’s what I would do if I were you.
If you deposited every rent checks to your personal checking account, and not to your corp bank account, then you should treat all your rent income as a personal income.
Another way is to correct the mistakes with your payor (housing authority) and have them issue the “corrected” 1099.
Re: Section 8 tax question - Posted by Dave T
Posted by Dave T on February 15, 2009 at 23:01:59:
Do you really have a corporation, or an LLC? If LLC, how is the LLC treated for tax purposes?
Re: Section 8 tax question - Posted by Cgallegos
Posted by Cgallegos on February 15, 2009 at 20:47:10:
I’m not sure if it’d be possible for you to 1099 your corporation?
Re: Section 8 tax question - Posted by Mike
Posted by Mike on February 16, 2009 at 05:42:19:
No. It is defintely a C Corp.