Have any HO's received their 1099's for production yet ?? I was under the impression we paid for the cost of our room with materials etc not the fees for a desiner and carpenter, almost hit the floor with this news.
This message has been edited. Last edited by: kimikat,
Your not the first Homeowner I have heard on these boards mention that fact. If you look back at the posts from around this time a year ago, you will find out what different HO's had to say on that issue. I'm surprised TS doesn't mention this fact to you before they come to your home. I'm sure in weeks to come, more HO's will come forward and post on this. I'm sorry it was such a shock to you. Brenda
Please ask (& write a letter, certified, etc.) to the Producers or legal team and ask them why they dod not clealry tell you about the tax issues. I know they're tell you it is in "the contract"/// almost like dealing with used car sales, huh?
Yeah it was quite a shocker, i mean we do have a contarct that states we have to pay for the room and other incurred expenses but i thought it'd be for damage or something, not to pay their salaries....thanks for the feedback
You're not paying their salaries. You're paying taxes for "value received." Imagine if you were bartering services. You got the "value" of those professional services, and I can not imagine TLC isn't spelling that out pretty clearly somewhere, after doing this all these years. There are arguments you can make about the assessments, and ways to arrange payments. I would recommend hiring a good tax consultant at this point.
First off, Banyan/Discovery Channel aren't collecting the tax from you and using it for anything. They sent you a 1099 for the value of "goods and services received". It doesn't matter if you paid for them or not, you did receive the benefit.
Secondly, you did receive the free services of the designers and carpenters, even though there was a value to their work. The IRS has been collecting taxes on this long before there was a TLC. Even back in the 80s it was an issue with This Old House. People there were getting 1099's for several hundred thousand dollars because of the donated goods and services.
Most importantly, you do have the right to an audit of the 1099. They need to provide you with an itemized invoice of everything spent on the room and you have the right to dispute numbers.
Remember when a designer called in a room a couple of years ago and brought in items she was discarding from a home of her own that she was renovating? If she over-estimated the value of her old used light fixture and other items and the HO got 1099'd for it, then they have the right to dispute the value and have it adjusted appropriately.
FWIW, labor is taxable in many states. But prizes are taxable in ALL states. The labor was part of the prize, so it's not separated for these purposes.
Just a little update about this...We just had our on camera test yesterday...and they told us right from the beginning about the taxes...so they must have changed that..
