Hoping for Help. Ehow, Demand

[stefunny1207]

So, many years ago, I wrote a bunch of articles for ehow and demand studios. haven't done it forever, but I was getting some payment every month. Last summer, I got offered a bunch of money for the articles so I took it.

Now, I'm wanting to file taxes and I have no idea who gave me that chunk of money. I am wondering if since it's been so long, if the 1099 went to the wrong address. At any rate, I've filed on IC work without it before just with the name and address of the payer with no problems. I checked paypal and they show the payer as Demand Studios, but the link to the "payer" says ehow and I thought it was ehow, but now I don't know. I know this sounds retarded, but I just really haven't had anything to do with either one since forever and I have no idea who bought those articles last summer. Anyone know????? And if anyone did get the 1099 for the article buyout over the summer, if you could give me the name and address on the 1099, I would be so thankful. PM if necessary. Thanks!!!!!!!

[ebookwriter1]

You shouldn't get a 1099 for your eHow buyout because they bought an asset from you, not a service. The income is usually taxable, so ask your accountant/tax prep person how to report it.

[stefunny1207]

Thanks!! That makes it tricky. I never considered that they were buying something from me, but I guess that makes sense. My residual income from those articles and AC combined really didn't amount to much, let alone enough to get a 1099. I'm so at a loss. I wanted to do my taxes myself, but I guess this isn't any different than selling a tv or something? My husband is going to beat me with a stick if we have to pay someone to figure this out.

[Brandi]

I really recommend Turbo Tax. We've used it for years, and it's super-simple. With the $50 version, they have all of the WAH questions I need. There is one in there about selling a business asset that would insert the numbers in the appropriate spots for you.

[runkin]

I am trying to figure out what I received on my 1099 as well. I believe it is just showing the income from my ehow articles before the buyout. I haven't gotten a 1099 for the buyout royalties, but the above comment about the buyout being like the purchase of an asset makes sense. Anybody else figure anything else out related to Demand Media and eHow? Just trying to figure out how I am doing my taxes. Thanks!!

[TiffanyB]

I actually emailed Demand Studios about not counting the buy out offer in the 1099 and this was their reply:

"Demand Media Studios is not distributing 1099-MISC forms for payments associated with the purchase of former Writer Compensation Program articles. In these cases, you were being paid for the copyright to the article, which is an asset, not a service. Payment for asset purchases is not reportable on form 1099. However, the payment is generally taxable. For further information or advice, we recommend that you contact your tax professional about your specific circumstances"

[runkin]

Thanks for the info from your email. Did you find a good way to claim the buyout money? If I talk to a tax prep professional tomorrow I will post what I find out. Thanks again!

[stefunny1207]

Yes, please let us know. I'm using taxact and I see where I put a sold asset, which I did, it seems to be counting it as a capital gain, which is a much lower tax rate, yeah. but I started getting confused about it asking for my cost and loss. They didn't cost me anything to write, but I did lose a monthly income off them. I'm gonna do some digging. Luckily, it didn't change the refund too much. I'd love to hear from anyone who can shed more light. I've had 1099's before but never this.