I am in the process of starting a small farm business for which I have set up an LLC with EIN. In 2023, the LLC received a USDA NRCS Taxable Grant (1099-G, Box 6) for a high tunnel.
Do I report this 1099-G on Schedule F even though my business was not yet open in 2023?
To me, neither Schedule F nor the subsequent Self Employment Tax seem applicable for 2023 because I was not engaging in ongoing business activities. And, the SE Tax is being calculated on 100% of the Taxable Grant because there are no deductions for depreciation or start-up and organizational expenses. (It’s my understanding that these deductions start in the tax year in which the business officially opens.)
A second option for entering the 1099-G is from another Turbo Tax forum: https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-enter-info-for-a-ta....
In doing this, the 1099-G gets reported on Schedule 1 which makes it look like I personally received the taxable grant rather than the LLC. Is that a problem with the IRS? How would they reconcile a 1099 issued to the LLC EIN being reported on Schedule 1 which is tied to my personal name and SSN?
Thank you in advance to anyone who can help me sort this out.
