Hello everyone. Something was just discovered (possibly an oversight) and interested in additional thoughts on the matter.
Some time ago I had an opportunity for a consulting engagement that would be independent 1099 (where previously I has been same consulting line of work, but as short term W2.) Time crunch and fastest way to establish was to use an existing LLC, and split it as a DBA.
LLC has mainly handled real estate (but could be a shell so-to-speak), and the DBA would be software consulting.
Obviously the LLC and DBA have the same EIN, and they share the same address.
The plan was to put the 1099 as Schedule C, and everything was on a Schedule E.
In thinking through, given the same EIN and address and dba status, now thinking the 1099 income actually NEEDS to be part the Schedule E, not its own business under schedule C. Does that sound right?
----- If Yes, continue reading -----
If that is right, then a few other related questions:
The LLC are rental. Each property has its own column on the Schedule E. Presuming the DBA would take up a new column on the Schedule E (and in part because the consulting work was not specific to any property in particular, or at all.)
Taking it a deeper level, this is a new discovery for the 2019 taxes. 2018 taxes had the same scenario, however the 1099 was on a schedule C (possibly oversight.) Would switching from Schedule C to the E for 2019 taxes cause any issues or review?
