PatriciaV
Expert Alumni

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:

  1. Go to the Business Income section.
  2. Choose the business you need to work on. Continue to the Business Summary page.
  3. Scroll down to Business Expenses.
  4. Click Start/Update beside Other Common Business Expenses.
  5. Scroll to the bottom and click Start/Update beside Other Miscellaneous Expenses.
  6. On the page "Any Miscellaneous Expenses?" enter the funds paid to the owner with a custom description.
  7. 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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post