- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
Someone answered the question for me. They essentially explained that since the grant is not taxable, I wouldn't put it as income in my books. It would go to the shareholders equity account. So will still show a loss for the year.
I had originally placed the grant as "other income" in my books. By adding the normal income my business made and the grant as "income," this left me in the (+) after deducting expenses. Which is wrong.
Even though the grant helped me stay above water, I had a loss for the year in the eyes of the IRS since the grant is not seen as taxable income.
‎April 6, 2021
12:02 PM