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Subject:  Re: 1099-misc Date:  2/2/2012  3:17 PM
Author:  irasmilo Number:  114882 of 121061

You are considered to have received the money as freelance or consultant income. You then spent the income on your expenses for the speaking engagement. Your net income from the activity is $0.

Just out of curiosity, what if the speaking engagement had been at the very beginning of January and he had spent the money for plane tickets in December?


Assuming that the speaker didn't know in December that he was going to receive a 1099-MISC for the January reimbursement a year later, he wouldn't have included a Sch C with the "December" return. In that case, I would probably go back to the 1099 issuer and ask them to cancel the 1099-MISC. They don't have to do this as the issuance is technically correct. If they refuse, I would amend the "December" return to show a Sch. C with $0 revenue, but all the expenses. The "January" return treats the reimbursement as a recovery. See IRS Pub. 525.

Ira
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