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Level 1
posted Aug 20, 2024 9:47:12 AM

My LLC received a 1099 from an organization that is a customer.

My LLC received a 1099 NEC from an organization that is a customer. I used those funds directly to purchase a service for them. How do I figure that on my taxes? Enter it in on the business expense section? Any help is appreciated! The amount was about $30,000.

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3 Replies
Level 15
Aug 20, 2024 10:23:36 AM

Are you filing schedule C in your personal tax return for your LLC?   Why did they give you a 1099NEC?  Did they pay you for something?  A 1099NEC is for Income.  So you need to include it in your gross income and then  you enter all your expenses separately in the expense section.  It will be 2 separate transactions.  

Level 1
Aug 20, 2024 11:51:29 AM

Yes I have a schedule C. They paid me for airline tickets. They sent me the money and then I sent it to the airlines for payment.

Level 15
Aug 20, 2024 12:08:58 PM

Then you have to enter it as income.  Then you enter all your actual expenses including what you paid for the tickets.  It will be a wash and offset the income.