I received a 1099-K in error as my company had been sold and the 1099-K should have been issued to the new owner. How can I handle this so not to be taxed on that income?

[wwildberge]

Can I issue a 1099-misc to the new owner in the same amount as an expense deduction?

[MayaD]

Per IRS:

If the information on the form is wrong, contact the issuer of the Form 1099-K immediately. The issuer's name appears in the upper left corner on the form along with their phone number. Keep a copy of all correspondence with the issuer for their records.

If you can't get a corrected Form 1099-K, report the information on Schedule 1 (Form 1040), Additional Income and Adjustments to Income PDF, as follows:

• Part I – Line 8z – Other Income – Form 1099-K Received in Error.
• Part II – Line 24z – Other Adjustments - Form 1099-K Received in Error.

The net effect of these two adjustments on adjusted gross income would be $0.

Please check JamesG1 response for how to report that in TurboTax