SSN or EIN

[Alfeo Dixon SOC]

FYI I had a production company ask me for my social security number for a rental invoice stating that he need my name also on the w9 as well as ssn, because I am a sole proprietor. The name part is correct, but if you have an EIN, you are able to use either. Don't let them force you to place this on your ssn if your book keeping methods are to use your EIN.

 

-Alfeo

[Robert Starling SOC]

The 1099 reporting form has a spot on it for rental income which is taxed differently. In the past I've tried to go through and get corrected forms so they don't report it as misc income but it's a pain in the butt. My CPA just splits it out now on his own for my return. Most companies are too lazy or just don't pay attention and they dump it all into Misc income. You do have a right to request a correction.

 

I invoice based on whatever pays the quickest or is easiest for production to get set up but as you know every client is different. It seems like most of the studios pay personally by payroll but they want the kit on a corp or at least an invoice.

 

Your mileage may vary.

 

Robert

[Bryan Fowler]

so... what's the benefit of using my EIN for rental? Is there less tax on rentals?

 

I always give them my EIN, but only because I didn't know better. =)

A couple of people have questioned, it, but I didn't know enough to argue it. and didn't know if I SHOULD argue it.

[Alfeo Dixon SOC]

so... what's the benefit of using my EIN for rental? Is there less tax on rentals?

Actually, it could shoot you into a higher tax bracket.

 

I doubt that there is less tax on it, but if you report the rentals on your SSN which then should 1099 Misc Income and there for is non-taxed income that will increase your personal tax liability.

 

I don't think so, you may have some state incentives for business, but its cleaner and helpful to know the difference of what was wages and what was business income. Not to mention if you ever incorporate your business, your already in the custom of separating the two.

 

-Alfeo "NOT a CPA, but I've see one played on set"