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Level 4
January 10, 2024
Question

My client volunteers for a non profit. she never got paid. They gave her a house from property owned by the non profit. Should they give her a 1099 for the price of the house? If so how would they claim it on their tax return?

  • January 10, 2024
  • 1 reply
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1 reply

sjrcpa
Level 15
January 10, 2024

Volunteers don't get paid.

Yes the value of the house should be reported on a 1099-NEC or W-2 if it was for services rendered.

The 990 reports it as wages or the specific category of service expense.

The more I know the more I don’t know.
JONI9611Author
Level 4
January 11, 2024

They want to give her a 1099S. That is not right because they did not sell a house. If the house is worth 400000. She would have to claim 400000 as earned income and pay self employment tax on it. Could they give her a 1099 and she could just claim as an asset.

sjrcpa
Level 15
January 11, 2024

"Could they give her a 1099 and she could just claim as an asset"

I don't know what this means.

 

Why are they "giving" her a house?

The more I know the more I don’t know.