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02-23-2021, 10:33 AM
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#1
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Montana Master
Join Date: Jan 2017
Location: home base IL, OTR anywhere
Posts: 542
M.O.C. #19382
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dealing with Keystone Warranty dept.
So, anybody out there get out of pocket warranty work done? My issue is the W-9 form they ask for to reimburse you for it and the resulting 1099Misc that gets issued. How do you handle it on your taxes? It's not income since it is repaying for out of pocket expenses to repair a warrantable defect. I can understand a W-9 if I was a contractor authorized by Keystone and submitting an invoice for parts and labor to Keystone to get paid for work done. But as owner paying out of pocket? Keystone clings to IRS tax code FATCA as the requirement... but FATCA is a reporting mechanism for income of independent contractors to ensure they pay their taxes on money earned doing work for a business. Mobile RV techs would fall into this category, but owners are not contractors.
Keystone is suggesting it is income. as such it would be taxable. Since I already paid taxes on the money to have it in my hands to start with, this results in double taxation of warranty reimbursements without an offsetting deduction.
Imagine going to the mom & pop grocery store and insisting on a W-9 from the store because I paid them money for groceries but I have to require evidence of the store paying its taxes on the money they received from me? This is the essence of what Keystone is doing with out of pocket warranty reimbursement.
OK, done venting.
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2017 RAM 3500 Laramie CCLB Dually CTD Aisin, OEM auto level rear air-ride, B&W hitch
2020 3813MS Legacy Cobalt FBP, MORryde 8K IS & pinbox, PI EMS,DIY mods by in-house "craftsman", RV security system Mk1 Beagle Alerter
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02-23-2021, 11:09 AM
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#2
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Site Team
Join Date: Oct 2005
Location: Carmichael - CA
Posts: 7,689
M.O.C. #4831
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This is not the first time this has come up. Here is a discussion from 2018. The conclusion is the W-9 is non-taxable.
https://www.montanaowners.com/forums...ad.php?t=74481
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Carl (n Susan)
There is more to life than fuel mileage.
2012 Montana 3700RL Big Sky Package towed by a 2015 Ford F350 6.7L PSD 4WD CC LWB
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02-23-2021, 11:19 AM
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#3
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Montana Master
Join Date: Jan 2017
Location: home base IL, OTR anywhere
Posts: 542
M.O.C. #19382
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I hate paperwork drills.
__________________
2017 RAM 3500 Laramie CCLB Dually CTD Aisin, OEM auto level rear air-ride, B&W hitch
2020 3813MS Legacy Cobalt FBP, MORryde 8K IS & pinbox, PI EMS,DIY mods by in-house "craftsman", RV security system Mk1 Beagle Alerter
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02-23-2021, 09:36 PM
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#4
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Site Team
Join Date: Jun 2011
Location: Wilsey
Posts: 18,799
M.O.C. #11455
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Tossed mine in the trash and never heard anything from anyone.
__________________
Dick, Joyce, Diego, Picatso and Gustav
2017 3720 RL, and 2013 HC 343RL
Pullrite Hitch, IS, Disk Brakes, 3rd AC, Winegard Traveler, Bathroom door mod, Dometic 320, couch for desk swap, replaced chairs, sun screens, added awnings, etc.
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02-24-2021, 05:12 AM
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#5
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Montana Master
Join Date: Oct 2019
Location: Jacksonville
Posts: 2,236
M.O.C. #25165
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It is more for them than for you. You can ignore it on your taxes. That really is a stupid regulation anyway.
__________________
Robert & Diana McNeal
2019 Montana Legacy 3791RD 20th Anniversary Edition
2014 F350 4x4 6.7L SRW
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02-11-2022, 03:03 PM
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#6
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Established Member
Join Date: Oct 2020
Location: FLORENCE
Posts: 38
M.O.C. #27261
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I did receive a 1099 misc. showing income for repairs to a 2021 Keystone Montana DEFECTS and unfortunately will have to pay additional income taxes while Keystone saves money by selling defective fifth wheels. I am sorry that I bought one. The only good part is that I'm now out of warranty and will not have to deal with Keystone Customer Service.
Keystone gets the last ounce of blood (money)by issuing the 1099. More lessons learned
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02-11-2022, 04:46 PM
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#7
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Montana Master
Join Date: Oct 2019
Location: Jacksonville
Posts: 2,236
M.O.C. #25165
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You might talk to a tax professional about that. The 1099 is just informational and shouldn't be counted as income to you, as I understand it.
__________________
Robert & Diana McNeal
2019 Montana Legacy 3791RD 20th Anniversary Edition
2014 F350 4x4 6.7L SRW
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02-11-2022, 05:06 PM
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#8
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Montana Master
Join Date: Oct 2004
Location: Salem
Posts: 7,669
M.O.C. #2283
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Montana is not picking on you. They are simply complying with federal regulations. If you do business you haft to comply. The only way around this is doing business with a corporation. I haft to send a 1099 to my brother. He is a sole proprietor, that is he isn’t a corporation. I’m a chapter S as most small to tiny business are.
Lynwood
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02-11-2022, 05:49 PM
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#9
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Established Member
Join Date: Oct 2020
Location: FLORENCE
Posts: 38
M.O.C. #27261
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IRS website does not show warranty repairs reimbursement as income.
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02-11-2022, 06:14 PM
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#10
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Montana Fan
Join Date: Nov 2019
Location: Roseville
Posts: 266
M.O.C. #25257
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If you get a 1099 you do have to claim it on your taxes. The Corporation will be reporting it to the IRS. You could take your chances and not claim it, but if the IRS catches it the will modify your taxes. In worst case, it could trigger an audit, which then can look back 7 years.
You were acting as an independent repair person when you did the repairs and got paid.
__________________
Jim and Carole
Roseville, MN
2018 RAM 3500 DRW, Diesel, Long Box, Air Lift Bags - 2020 Montana HC 381TH, Sailun S637
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02-11-2022, 06:16 PM
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#11
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Site Team
Join Date: Oct 2005
Location: Carmichael - CA
Posts: 7,689
M.O.C. #4831
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Quote:
Originally Posted by SLB
I did receive a 1099 misc. showing income for repairs to a 2021 Keystone Montana DEFECTS and unfortunately will have to pay additional income taxes while Keystone saves money by selling defective fifth wheels. I am sorry that I bought one. The only good part is that I'm now out of warranty and will not have to deal with Keystone Customer Service.
Keystone gets the last ounce of blood (money)by issuing the 1099. More lessons learned
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Read the previous Posts. You are not liable for taxes on this 1099.
__________________
Carl (n Susan)
There is more to life than fuel mileage.
2012 Montana 3700RL Big Sky Package towed by a 2015 Ford F350 6.7L PSD 4WD CC LWB
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02-12-2022, 03:37 AM
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#12
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Montana Master
Join Date: Oct 2019
Location: Jacksonville
Posts: 2,236
M.O.C. #25165
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Quote:
Originally Posted by mlh
Montana is not picking on you. They are simply complying with federal regulations. If you do business you haft to comply. The only way around this is doing business with a corporation. I haft to send a 1099 to my brother. He is a sole proprietor, that is he isn’t a corporation. I’m a chapter S as most small to tiny business are.
Lynwood
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Not sure I understand the statement "The only way around this is doing business with a corporation." My business is incorporated since 1999. I still must comply with federal regulations regarding Form 1099. Anything over $600.00.
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Robert & Diana McNeal
2019 Montana Legacy 3791RD 20th Anniversary Edition
2014 F350 4x4 6.7L SRW
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02-12-2022, 06:38 AM
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#13
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Montana Master
Join Date: Oct 2004
Location: Salem
Posts: 7,669
M.O.C. #2283
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What I’m saying is you don’t send a 1099 to a corporation. Remember I said I send one to me brother. He isn’t a corporation. If he was I wouldn’t need to send him one.
Although this may not be a taxable event it still is a reportable event. The IRS has a 1099 for the OP and will need an explanation. What is this 1099 for?
Lynwood
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02-12-2022, 06:42 AM
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#14
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Montana Master
Join Date: Oct 2019
Location: Jacksonville
Posts: 2,236
M.O.C. #25165
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Gotcha. I get 1099's from other corporations to my corporation, but as an individual, I don't have to send 1099's to corporations that I deal with. That makes sense.
__________________
Robert & Diana McNeal
2019 Montana Legacy 3791RD 20th Anniversary Edition
2014 F350 4x4 6.7L SRW
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02-12-2022, 07:48 AM
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#15
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Montana Master
Join Date: Aug 2009
Location: Grand Rapids
Posts: 1,898
M.O.C. #9561
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this is another stupid government thing added to the irs.
it is a pain but just, explain and give it to your tax guy and let them deal with it.
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02-12-2022, 08:25 AM
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#16
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Montana Fan
Join Date: Nov 2019
Location: Roseville
Posts: 266
M.O.C. #25257
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This has been part of the tax code for as long as I can remember, and I had tax accounting classes back in the 80's. It is basically a W2 for independent contractors. When you do warranty work and get paid, you are acting as an independent contractor. If they authorized a repair tech to come out and do the repairs, they would send them a 1099 to report the income. When you get paid for work, it is income.
__________________
Jim and Carole
Roseville, MN
2018 RAM 3500 DRW, Diesel, Long Box, Air Lift Bags - 2020 Montana HC 381TH, Sailun S637
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