Kid at day camp makes "profit," how treated?

It is most unfortunate that too many of us know too many of them

This is very simple. Let him do what ever he wants so long as it does not affect your sister's return or require your nephew to cough up the profits. Then find a malcious third party, e.g., Harlan, Stu, Phil, Seth, or me, who will report him to the IRS.

"Regs? Regs? We don't need no stinkin Regs!" It was a day camp. There was no intention to enter into a business to make a profit. Also it is not a profit unless it exceeded the cost of the day camp. Not to mention it is the child's money. To whom will the day camp issue a 1099? I say they won't be bothered.

I'm sending this to a friend of mine so she can see she's not the only one who has problems like this.

Dick

I believe you are correct.

Tell the ex-, "See you in court."

He's trying to wiggle out of his obligation by having his own child cheat on his taxes and claim non-existent business expenses.

There probably is no cite. Therefore, tell the ex, "See you in court."

Dick is correct. It isn't.

Probably not. Can the ex- provide a cite?

I know going to court is a costly, time consuming option. That doesn't mean you can't threaten the ex- with doing that. By the way, as any one considered asking the day camp how they view the amount given to the kid? Maybe if they're presented with all the facts they will say, "of course it's a refund of our fee."

A follow up to my post of a few minutes ago.

The kid has a taxable prize reported as "Other" income if he meets the filing threshold. There is no reduction in the camp fee. There is no reduction in the amount owed by the ex- to the op's sister.

There really isn't enough facts present to make a determination. Here's one possible scenario without having the facts.

You say the camp "gave him" money and the camp "gave him" the income in excess of expenses. This sounds as though the child was provided some money to use. The income was collected by the camp and when it was discovered that income exceeded expenses the camp decided to make a gift to the child! The whole thing was nothing more than an educational exercise in starting and running a business. I could think of more scenarios.

What say I? among others? Well, the total amount paid for day care is the form 2441 amount, in toto. The fact that the kid earned what we call "hobby" income during the camp, has no relation to what his mother paid. Therefore, if the money to be paid by the jerk includes the amount for child care, then the kid's separate income has no bearing thereon. But contrary to public opinion as posted elsewhere, I am not among those "malicious" ones. Why am I reminded of the motto of Scottish Stuart kings? "Nemo me impunit laccesit." (no guarantee on the Latin spelling however.) ChEAr$, Harlan Lunsford, EA n LA

Moderator: I was only trying to show you respect.