How do you say I love you? Apparantly, Howard Shih thought that the best way to show his affections for his live-in girlfriend was to send her a 1099!
In a recent court case, Jue-Ya Yang vs. Commissioner of Internal Revenue, Mr. Shih issued a 1099 to Ms. Yang (his girlfriend) arguing that the payments were payments for helping him in his business. Mr. Shih, an artist, deducted payments totaling $10,500 as expenses on his return. Ms. Yang, insisted that she did no work for Mr. Shih and that the payments were a gift and that they should not be taxable income to her. In the end, the court sided with Ms. Yang. The payments were a gift and were not for actual services performed.
Unfortunately, our happy couple are no longer together.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.