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About John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. Kentucky state income tax also. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > employee vs sub-contractor
Expert: John Stancil, CPA
Date: 5/13/2008
Subject: employee vs sub-contractor
Question
I have a new client who is a chiropractor. He has another chiropractor using one of his rooms to treat patients. All the revenue he brings in goes into a bank account and then is split in half. My client then gives the other chiropractor a 1099 for his half and deducts that amount as sub-contractor labor. Is the correct procedure? I am a little leary. The guy comes and goes as he pleases and sets up his own appointments. Thanks
Answer
Les,
Thanks for your question.
That is probably not the best way to handle it, but I think it would probably fly. From what you say I have no doubt the the other chiropractor is not an employee.
It would probably be better if the other chiropractor gave your client a check for 1/2 of the money. The other chiropractor could treat it as a fee for office use and the like.
Hope this helps.
John Stancil, CPA
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