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Can a homeowner buy all of the material and 1099 a contractor for the labor?
Another 1099 question.
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All you have to do is provide them with an invoice of your cost for labor / over head, Why would they 1099 you? they are not a business.
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No, a 1099 is for a company, government or nonprofit to claim on their tax forms. It's about them, not us. You could throw them all away, not file with them. The only way you would get caught is if the IRS crossed their tax filings with yours(not likely).butcher733 said:
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That's what I thought. It came up in a conversation awhile back and I was wondering.
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1099's the biggest waste of time and paper.... useless!
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the I-9 form is the second
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I'm still not sure where the government gets the constitutional right to tax labor.
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Labor isn't profit.
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The gov't doesn't tax labor, or material markup, or "profit"
They tax income, all of which qualifies.
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And how do we determine profit? We take the total gross income of your company lets say $500k, we subtract the cost of materials that you actually spent, the business expenses, employee payroll and their taxes paid, any other business item that's deductible. The amount that is left is what is considered profit that you made from your company, you are then taxed on that amount. So no they're not taxing you on labor. They're taxing you based on the number after you've paid your business expenses.Bkessler said:
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When they tax a paycheck, they are taxing your labor.
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I hate kicking a dead horse. What you get as take-take-home-pay as an employee, that is call gross income. After the govt taxes you, you're left with net income. Gross income is a result of you labor.
Labor=time spent working. Labor earns you money. That money, is called gross income. The govt can't tax time spent working. They can tax gross income.
I suppose that indirectly they tax labor, but that's exactly correct. This is why it is not unconstitutional.
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Sorry for the thread derailment Butcher. To my knowledge, only the hiring contractor can expense a hired contractors invoice. You cannot expense a contractor's invoice as a homeowner. Unless it is a energy upgrade, I believe that would be classified as a tax credit.
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No, they shouldn't be taxing my labor. Sure they can tax profit from investments, business or restate but they have no business taxing labor, it's tantamount to slavery. Why should someone be taxed just because they work when someone that chooses not to work gets the same benefits of public safety and infrastructure scot free?
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You probably pay little if any income tax.
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You probably have no idea what you are talking about :thumbup:
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I think it was the 16th Amendment, but I bet you knew that.
It's the price we pay for not controlling our government. The original tax revenue plan was a tax on commerce with the USA. But alas, then people took care of themselves and their families, and their neighbors. My how things have changed.
I read an opinion once that said the Founding Fathers would have been shooting by now (talking about the taxes the citizens of this country pay).
It is not a simple subject, and I'm not well read enough to comment more than I just did, but wow have things have changed in just a couple of hundred years.
Edit: To the OP question,
http://finance.zacks.com/file-1099-contractor-hired-work-own-home-7492.html
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if you pay taxes you need a better accountant.:whistling2:
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