Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-03-2014, 12:58 AM
Junior Member
 
Join Date: Apr 2014
Posts: 1
1099 misc cash vs accrual

I bought and sold stock in a trust last year and the tax instructions that were sent from the trust said that I needed to request an "accrual based" 1099 misc instead of the "cash based" 1099 that my broker likely sent. Since I bought and sold the stock in the same year, I'm wondering if it even matters. Any thoughts?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-04-2014, 12:57 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by EandAB View Post
I bought and sold stock in a trust last year and the tax instructions that were sent from the trust said that I needed to request an "accrual based" 1099 misc instead of the "cash based" 1099 that my broker likely sent. Since I bought and sold the stock in the same year, I'm wondering if it even matters. Any thoughts?
In the same year then no difference;Form 1099 reporting is to be done on the cash method and NOT on the accrual method. you report actual payments made, NOT accrued amounts. 1099's are reportable on cash basis, i.e., amounts paid. The payor's accounting method has nothing to do with it, since the object is to report income to the IRS relative to the payee. However, 1099 income accrued in year 1 paid in year 2 do not get reported on the sch c until year 2, regardless of whether or not they have been expensed in year 1 by the payor.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
1099 Misc BooFra689 Income 1 03-15-2012 08:57 AM
When are S corporations required to use the Accrual Method of Accounting? PeterAccountant CPA Forums 0 12-20-2011 03:58 PM
1099 Misc kfloyd Income 0 04-14-2010 10:16 AM
1099-MISC Cash vs Accrual Reporting Astice Income 0 04-05-2010 09:29 PM
1099-MISC Box 7 fire702fighter Income 0 02-06-2010 03:17 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.