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New Member
posted May 31, 2019 5:38:23 PM

Where to report payments to corporations acting as subcontractors that assisted me in completing a consulting project. I'm filing as S-corp?

I have am filing as an S-corp and made payments to a company that assisted me with a programming for a large consulting project.  The company I subcontracted the work to is also a corporation (not sole proprietors).  I understand that I do not need to issue a 1099-MISC since it's a corporation, but where do I report these costs?  The payments were about $11,000.  The subcontracted company wrote some pieces of some software that I also worked on which was sold to my client.

Thanks!

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1 Best answer
Level 13
May 31, 2019 5:38:26 PM

You can include them in the "other deductions" line on page 1 or if you complete the cost of goods sold form 1125-A you can reflect them there.  It is one or the other.

3 Replies
Level 13
May 31, 2019 5:38:26 PM

You can include them in the "other deductions" line on page 1 or if you complete the cost of goods sold form 1125-A you can reflect them there.  It is one or the other.

New Member
May 31, 2019 5:38:28 PM

It is my understanding that I can only use cost of goods sold if I have inventory, right?  The computer program they helped developed was specifically contracted for my client as a proprietary product, so there is really no inventory, if I understand this correctly.  I'll list the expenses on line 1 as you suggest.  Thanks.

Level 13
May 31, 2019 5:38:30 PM

Yes the 1125-A is for those that have inventory and was not sure of the whole picture of your business.  I believe you mean page 1 line 19.