topic How to report 1099-INT interest income received by an LLC taxed as a disregarded entity? in Get your taxes done using TurboTax

How to report 1099-INT interest income received by an LLC taxed as a disregarded entity?

yveshuin — Tue, 04 Jun 2019 21:27:14 GMT

You would still report this interest income under Schedul...

DS30 — Tue, 04 Jun 2019 21:27:16 GMT

You would still report this interest income under Schedule C. Even though the LLC is considered a disregarded entity for income tax filing purposes, this will not change business interest income (reported on Schedule C) to personal interest income (reported on Schedule B).

You can report this LLC interest income under "other income" under the business income (screenshot).

Please note: Even though line 5 on the Schedule C says "other income not reported on 1099", it is actually referring to 1099-MISC income only and not interest income (reported on a 1099-INT). So this is the appropriate place to report business interest income if you received a Form 1099-INT.

I agree on the principle but do not understand how to rep...

yveshuin — Tue, 04 Jun 2019 21:27:18 GMT

I agree on the principle but do not understand how to report it on Schedule C as line 5 "Other Income" specifies NOT REPORTED ON 1099? Thanks for the clarification.

Even though line 5 on the Schedule C says "other income n...

DS30 — Tue, 04 Jun 2019 21:27:19 GMT

Even though line 5 on the Schedule C says "other income not reported on 1099", it is actually referring to 1099-MISC income only and not interest income (reported on a 1099-INT). So this is the appropriate place to report business interest income if you received a Form 1099-INT.

Thank you very much for your explanation.

yveshuin — Tue, 04 Jun 2019 21:27:21 GMT

Thank you very much for your explanation.

You are very welcome and I wish you good luck in all your...

DS30 — Tue, 04 Jun 2019 21:27:22 GMT

You are very welcome and I wish you good luck in all your future endeavors.

This answer seems correct, but is inconsistent with sever...

bferranti2022 — Tue, 04 Jun 2019 21:27:23 GMT

This answer seems correct, but is inconsistent with several other Q&As re proper treatment of bank interest from an LLC or sole proprietor's business account.

Conflicting answer:
stephenslawter — Tue, 04 Jun 2019 21:27:25 GMT
Conflicting answer: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4370635-if-i-receive-a-1099-int-in-the-name-of-my-llc-and-in-my-llc-s-ein-should-i-report-this-as-business-income-on-sch-c-or-should-i-report-this-as-personal-income-on-sch-b#collapsable_comment_answer_6798812">https://ttlc.intuit.com/questions/4370635-if-i-receive-a-1099-int-in-the-name-of-my-llc-and-in-my-llc-s-ein-should-i-report-this-as-business-income-on-sch-c-or-should-i-report-this-as-personal-income-on-sch-b#collapsable_comment_answer_6798812</a>

Guys which is the right answer? Does it go on schedule C...

speedway121 — Tue, 04 Jun 2019 21:27:26 GMT

Guys which is the right answer? Does it go on schedule C or schedule B?

Re: How to report 1099-INT interest income received by an LLC taxed as a disregarded entity?

eds4526 — Tue, 03 Dec 2019 17:00:39 GMT

If the interest is not distributed (unrealized); must it be reported as Income. No 1099 received.

Re: How to report 1099-INT interest income received by an LLC taxed as a disregarded entity?

Anonymous_ — Tue, 03 Dec 2019 17:25:45 GMT

@eds4526 wrote:

If the interest is not distributed (unrealized); must it be reported as Income. No 1099 received.

The interest is required to be reported even if a tax reporting statement, such as a 1099, is not received. It is entirely inconsequential whether or not the interest was distributed to the owners (e.g., members of an LLC, S corporation shareholders, etc.).

Re: You would still report this interest income under Schedul...

karenblackwell — Wed, 19 Feb 2020 21:39:01 GMT

I have reported it on Schedule C but the IRS thought the 1099-int was not reported. They thought it was under reported income. It was cleared up with explanation but there has to be a more clear way to report it on Schedule C but still reference the 1099-INT

Re: You would still report this interest income under Schedul...

KrisD15 — Sat, 22 Feb 2020 00:55:18 GMT

You might want to put the interest bearing account in the name of your business.

Re: You would still report this interest income under Schedul...

Anonymous_ — Sat, 22 Feb 2020 01:35:55 GMT

@karenblackwell wrote:

...there has to be a more clear way to report it on Schedule C but still reference the 1099-INT

You do not actually want to report bank interest (e.g., savings account interest) on your Schedule C unless you are dead set on paying self-employment tax on that interest income.

Otherwise, that type of interest income should be reported as personal, rather than business, income.

Re: You would still report this interest income under Schedul...

funnyknife — Tue, 10 Mar 2020 00:31:35 GMT

I have an identical situation to your.

Reported 1099int on Schedule C but the IRS thinks it is under reported income.

How did you clear this up with them? could use your advice.

Re: You would still report this interest income under Schedul...

ThomasM125 — Tue, 10 Mar 2020 00:50:15 GMT

The purpose of schedule C is to report self-employment income. Unless you are in the business of loaning money, the interest income would be unrelated to your self-employment activities and as such it would be acceptable to report it on schedule B.

This would avoid the problem you have with the IRS not being able to identify it as being reported on your tax return, and would also shelter it from self-employment tax.

Re: You would still report this interest income under Schedul...

funnyknife — Tue, 10 Mar 2020 00:53:52 GMT

I completely understand what you are saying but as a hard money lender it is my primary business and is quite substantial income.

Re: You would still report this interest income under Schedul...

JamesG1 — Tue, 10 Mar 2020 17:16:00 GMT

Are you able to have the 1099-Int reported in the name TIN of the business and not your Social Security number?

Re: You would still report this interest income under Schedul...

bcat19 — Mon, 30 Mar 2020 15:44:52 GMT

I have an LLC which earned promo interest when I opened a new bank account. This generated a 1099-INT. Since this is a rental and a flow-thru entity, it gets reported on Sched E on my personal tax return under my SSN. So how do I clear the 1099-Int that came from the LLC TIN?

Re: You would still report this interest income under Schedul...

DaveF1006 — Mon, 30 Mar 2020 19:00:49 GMT

if this was issued to the LLC, you will need to report this in your business return. The income generated from the 1065 will then pass-through to a K1, which you will use to report the interest on your tax return. Don't try to circumvent the process to directly report this in your own tax return. Use the K1 to report it.