new schedule C - indirect compensation

[Guest allen293]

Hi all,

I'm a bit confused about the interaction between the exclusion for insubstantial non-monetary compensation and the $5000-compensation per person threshold for reporting a service provider on the new 2009 Schedule C.

Does the de minimis exclusion (and its various rules) apply for purposes of determining the $5000 reporting threshold? So if a person receives $4990 total in reportable direct and indirect compensation plus a nonmonetary gift valued at $20, then that person need not be reported at all on Schedule C?

Thanks!