Discussion:Insurance agent awards

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Discussion Forum Index --> Basic Tax Questions --> Insurance agent awards
Discussion Forum Index --> Tax Questions --> Insurance agent awards

NSS (talk|edits) said:

9 March 2010
An Insurance agent receives success driven awards such as travel, stock, and other non cash items.

The value is included on his 1099. He operates as an S Corporation. How are those reported on his tax return? I appreciate your assistance.

Kevinh5 (talk|edits) said:

10 March 2010
as income

Death&Taxes (talk|edits) said:

10 March 2010
I think NSS needs to reword the question: how do you account for these in the bookkeeping system generated by bank records?

Kevinh5 (talk|edits) said:

10 March 2010
no, this would have been posted under 'accounting questions' if NSS was asking a bookkeeping question.

NSS (talk|edits) said:

10 March 2010
Ok,, kids,, no bickering!!

You are both right. My client receives a 1099 under his name. So i record the cash value of these non cash items as income on his s corp return, Correct? When i record them in his books, credit income, debit what? Thank you

Kevinh5 (talk|edits) said:

10 March 2010
well, if he got paid, how did he get paid?

cash?

check?

goose feathers?

and the answer is: goose feathers


so what did he do with those goose feathers?

Kevinh5 (talk|edits) said:

10 March 2010
if he used them for business use, he get's a deduction

if he took them home to tickle his wife's fancy


he gets to keep his wife, but no deduction

Kevinh5 (talk|edits) said:

10 March 2010
mind you, most men don't even know how to find their wife's fancy.

Harry Boscoe (talk|edits) said:

10 March 2010
Debit Goose-feathers-in-hand, right? I'm pretty sure they're not in the bank. But who's got the feathers, the S corp or the insurance agent?

Kevinh5 (talk|edits) said:

10 March 2010
a goose feather in the hand is worth two in the... well, er....

Kevinh5 (talk|edits) said:

10 March 2010
yes, your thinking was more on track than mine, Harry. Could be shareholder distribution of a butt-load of goose feathers. Which is a whole 'nother visual.

Kevinh5 (talk|edits) said:

10 March 2010
'shake your tailfeathers'

Death&Taxes (talk|edits) said:

10 March 2010
If he really is an S Corp, and these cannot be deducted as expense, then these must be charged to distributions (dividends).

NSS (talk|edits) said:

10 March 2010
Sorry if this is rude, but i go on this site to post serious questions to I thought serious tax professionals..

You are wasting my time reading through all this nonsense.

Kevinh5 (talk|edits) said:

10 March 2010
You are just a little too tightly wound to see the wisdom in our posts. Better luck wherever else you go.

I gave you the correct answer in my first response.

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