topic 1120S payment of legal expenses in Business & farm

1120S payment of legal expenses

aerospa1 — Mon, 09 Mar 2026 05:10:28 GMT

Received legal award from court order as result of motion of attorneys fees and cost. Can the proceeds go into Line 5 Other income, no 1099 Misc was issued?

Re: 1120S payment of legal expenses

MinhT1 — Wed, 23 Feb 2022 16:37:21 GMT

Yes, the legal award can be reported as Other income on form 1120-S.

Re: 1120S payment of legal expenses

aerospa1 — Wed, 23 Feb 2022 16:45:06 GMT

When I do this it does not transfer to K1 is that correct?

Re: 1120S payment of legal expenses

MinhT1 — Wed, 23 Feb 2022 17:00:05 GMT

Other income will transfer proportionately to the Schedules K-1 in box 10 (Other income).

Re: 1120S payment of legal expenses

Mike9241 — Wed, 23 Feb 2022 21:14:37 GMT

if the award was made to the shareholder, that's the one who needs to report it not the S-Corp.

the award may not even be taxable.

Re: 1120S payment of legal expenses

aerospa1 — Wed, 23 Feb 2022 21:33:16 GMT

No the award was made to the Company not the share holder.