Hi,
We received a forgivable loan from a University and this was reported on a 1099-MISC.
All these funds were used for a new non-profit organization (NCC) in the same tax year. The non-profit organization is not an LLC.
Is this income considered ordinary income? Also, do we consider the NCC a "business", and report the income accordingly. Or, is this income to be reported under the charity portion of the tax return? Or, is there another form we need to fill out.
Thank you.
Greg
