Mega Agreement

[J.R.]

Folks,
I am hoping that some of you ex-NASE agents can help me out. I am in the middle of dealing with a MEGA representative pertaining to settling my acount and I am curious to know a few things.

I have yet to receive a 1099 from them and I was under the impression that form is supposed to be mailed out by the end of January. As I am in the middle of settling the account I am curious if I have to pay taxes on the advances if they are paid back? If that is the case, will a new 1099 be drafted or is there some other way to go about this item? Thanks.

 

[Buster]

Did you end up getting screwed by Mega? It's pretty usual with their agents. Hopefully you left before it was too late and you owed them too much money and lost too much money trying to sell for them.

 

[HM-agent]

1099 is based on your account, not advances.

 

[LGilmore]

it will all depend on dates issued. Everything paid/returned in 07 is 07. Everything paid/returned in 08 is 08.

If you have to pay back in 08, keep a record of it and use it to offset 08 income.

 

[Crabcake Johnny]

True. 1099 reflects what you actually earned, not just advances. Say you get advanced $20,000 but $5,000 charged back in '07. Your 1099 would show earnings of $15,000.

Now say you got advanced $20,000 in '07 but $5,000 just blew back in January of '09. You still owe taxes on the $20,000 and the $5,000 in chargebacks, as stated above, will offset '08 taxes.

 

[arnguy]

True. 1099 reflects what you actually earned, not just advances. Say you get advanced $20,000 but $5,000 charged back in '07. Your 1099 would show earnings of $15,000.

Now say you got advanced $20,000 in '07 but $5,000 just blew back in January of '09. You still owe taxes on the $20,000 and the $5,000 in chargebacks, as stated above, will offset '08 taxes.

John, I think you made a typo. I believe you mean if it blew back in January of '08, because if it blew back in '09 the chargebacks would be applicable only in the calendar (taxable) year of '09.

 

[Crabcake Johnny]

Yep - meant '08.