1099K Plus

Forum|Forum|5 years ago
March 8, 2021
2 replies
19 views

Hi,

I have 3 questions:

My wife has a small Dance Studio that is a 501c Corporation. She received a 1099K from Paypal for $10,253 that is from tuitions paid online. That money is transferred to the business checking and is added as income in Quicken and claimed as such. Do I include the 1099K as income and remove the amount as income that was deposited?

Will there be an update in TurboTax to include the unemployment forgiveness of the first $10,200, obviously after it becomes law.

Finally, Last year I transferred a few thousand dollars from my personal account to the business account to help keep it a float. I'm never going to get that back, can that be written off as an investment loss?

Thank you.

Dan Belz

TurboTax Home & Biz Windows

Best answer by KathrynG3

1. Yes, report Form 1099-K as received and reduce the rest of the income so that it is only counted once. For more information, see: How do I import from Quicken in TurboTax CD/Download?

2. This question cannot be answered until more information becomes available after it becomes law.

3. The money transferred from your personal account to the business account to help keep it afloat can be treated as a loan payable by the business.

It cannot be deducted since there is still hope of any recovery while the business is still open and because you are related to her. The transaction is not arm's length in the eyes of the IRS.

For more information, see: Topic No. 453 Bad Debt Deduction | Internal Revenue Service

KathrynG3Answer

Level 14

1. Yes, report Form 1099-K as received and reduce the rest of the income so that it is only counted once. For more information, see: How do I import from Quicken in TurboTax CD/Download?

2. This question cannot be answered until more information becomes available after it becomes law.

3. The money transferred from your personal account to the business account to help keep it afloat can be treated as a loan payable by the business.

It cannot be deducted since there is still hope of any recovery while the business is still open and because you are related to her. The transaction is not arm's length in the eyes of the IRS.

For more information, see: Topic No. 453 Bad Debt Deduction | Internal Revenue Service