Friday, February 6, 2009

Income from Cruises and trips

If you win a trip or even if you get a cut-rate deal on a cruise, you could owe tax for the difference between your cost and the fair market value of the cruise.

I had a client call me just before I was ready to electronically file his return and he had received a form 1099 for the value of the cruise (minus what it cost him). He had mailed me the authorization form for electronically filing it, but, fortunately, I had not received it so I was able to add the additional income item to his return.

He is still getting over # 4,000 refund.

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