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Level 1
posted Feb 28, 2023 3:11:34 PM

Small Business Start up then Distributing Business goes bankrupt. Sch C

I have a regular job and receive a W2 form, but I needed a 2nd income to help meet bills.  So, I tried to find a 2nd job at home for additional income.  I will leave the company names out and just refer as Company 1, 2, 3.

 

What happens when you start a small business by purchasing SPA products to resell and the company goes bankrupt and a 2nd company purchased the product line but not the company (then said).  So when I asked them for a 1099 they replied in an email that they are not responsible for the 1st company and since only earning $246.93 from the 2nd company I did not receive a 1099.  So can I claim loss of inventory product and expenses when you don't get 1099 for those 2 companies?  In addition, an out of town conference expense for 1st company... 

And if that is not enough, I am now with a 3rd SPA Distributor company all in 2022. I did receive a 1099 NEC for the 3rd company of $868.00.  I have a lot of expenses and old inventory.  So do I merge all my loss and expenses together as 1 company under my business name and show a loss without being audited?

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1 Replies
Expert Alumni
Feb 28, 2023 3:36:44 PM

Yes, you should enter all your revenue and expenses as one business in TurboTax. You need to report all the income you received even if a Form 1099-NEC was not issued. You will see an option to do that when you enter your business income.