What is the name of your state? OH
Question 1: I moonlight as an IT consultant for a business who then sends me a 1099. Because it is a lot less hassle I purchase pc's, software, etc with my own credit card and they then reimburse me for the exact amount. They then send me a 1099 that includes all the money for hardware etc...so it looks as if I made a bunch of money when really only a small amount that I charge for install, setup, etc. How do I report this? I am really not reselling the equipment. I am just getting reimbursed for it.
Question 2. In 2006 I bought aprox 40K worth of hardware/software for this company. I didn't finish the job and or bill them unitil after Jan 1, 2007...so 2006 is going to have all the expenses while 2007 shows all the income? What are the rules or what shall I do?
Question 1: I moonlight as an IT consultant for a business who then sends me a 1099. Because it is a lot less hassle I purchase pc's, software, etc with my own credit card and they then reimburse me for the exact amount. They then send me a 1099 that includes all the money for hardware etc...so it looks as if I made a bunch of money when really only a small amount that I charge for install, setup, etc. How do I report this? I am really not reselling the equipment. I am just getting reimbursed for it.
Question 2. In 2006 I bought aprox 40K worth of hardware/software for this company. I didn't finish the job and or bill them unitil after Jan 1, 2007...so 2006 is going to have all the expenses while 2007 shows all the income? What are the rules or what shall I do?