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

[DS30]

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.

[yveshuin]

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.

[DS30]

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.

[yveshuin]

Thank you very much for your explanation.

[DS30]

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

[bferranti2022]

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.

[stephenslawter]

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-ll...>

[speedway121]

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

[eds4526]

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

[tagteam]

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@eds4526 wrote:

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

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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.).

[karenblackwell]

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

[KrisD15]

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

[tagteam · Accepted solution]

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@karenblackwell wrote:

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

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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.

[funnyknife]

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.