Last year I received a 1099-MISC for the cash I received for the Royalty payments (Box 2 Royalties). I know that the $10k in cash still needs to be reported as business income on my Sched C; do I just say "no" to 1099MISC and eventually enter the business income? What about the "stock in lieu of cash"? How do I enter that into TT Deluxe? The stock is from a very small, start-up corporation and I still have it today if that makes a difference.
You'll need to sign in or create an account to connect with an expert.
You are correct. Even without a Form 1099-MISC, you still must report all business income.
As you proceed through the TurboTax interview, under Wages & Income, indicate that you have income for which you did not receive a Form 1099-MISC. You will be directed to enter a description of the income and the amount.
The stock that you received as payment must be valued at its FAIR MARKET VALUE on the date received. It is often difficult to obtain a market value for stock in a start-up corporation, especially if there is a small or nonexistent secondary market. If the company is still in the process of selling shares to investors, it may be that the subscription price is the best indicator of FMV.
You are correct. Even without a Form 1099-MISC, you still must report all business income.
As you proceed through the TurboTax interview, under Wages & Income, indicate that you have income for which you did not receive a Form 1099-MISC. You will be directed to enter a description of the income and the amount.
The stock that you received as payment must be valued at its FAIR MARKET VALUE on the date received. It is often difficult to obtain a market value for stock in a start-up corporation, especially if there is a small or nonexistent secondary market. If the company is still in the process of selling shares to investors, it may be that the subscription price is the best indicator of FMV.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
JamesT81
Level 2
taxpreparer101k1
New Member
sciccone002
New Member
dionne_materioli
New Member
bullbear43
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.