Originally Posted by
channa
+1
Just because an entity 1099's you (or threatens to 1099 you) for an amount, doesn't make it legit.
If it's cash, it's one thing. But on an item, there's discretion.
Exactly. Get a good accountant and just document the difference between the value on the 1099 and the value you impute, keep good records of how you calculated the value and proceed. Very little tax would be due if you know what you are doing and value miles correctly.