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Get your taxes done using TurboTax
Yes, you can report the amount sent to the actual owner as a miscellaneous business expense using a custom category description. To meet the IRS requirements, you should create and send Form 1099-MISC to your cousin for the funds he received, even though he may not file a US tax return.
To enter this expense in TurboTax:
- Go to the Business Income section.
- Choose the business you need to work on. Continue to the Business Summary page.
- Scroll down to Business Expenses.
- Click Start/Update beside Other Common Business Expenses.
- Scroll to the bottom and click Start/Update beside Other Miscellaneous Expenses.
- On the page "Any Miscellaneous Expenses?" enter the funds paid to the owner with a custom description.
- Continue to the end to save your entries.
Note: If you enter a general business expense in the wrong category, it will not affect your taxes. Just be sure you don't enter the same expense twice.
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‎January 28, 2024
7:19 AM