reporting 1099-K with S-corp 1120s

[kjreneli]

I received a Zillow 1099-K for income that was paid to my S-Corp under my personal name and NOT the S-corp.  I do not see anywhere to input that income with my 1120s forms. Logic tells me to report that income on 1120s and also on our K-1 BUT with a deduction of the same amount and show it as reported income on 1120s   No where is there a 1099-K section on my TT Business software.  Where do I report it?   AND since Zillow shows it as 'personal' 1099-K income, what is the procedure?  

[ThomasM125]

You should include the income with your other sales on your S Corporation return, as the IRS does not track corporate income reported on a Form 1099-K, so there is no specific entry for it.

You can not enter the Form 1099-K on your personal tax return since the income is listed correctly on your S Corporation return. It is common for income reported on a Form 1099-K to be listed under business income elsewhere so it is questionable as to whether it will draw much scrutiny from the IRS.

If you want, you could enter the Form 1099-K on your personal return and then enter a negative adjustment to "other income" to cancel it out as follows:

1. From the Federal menu in TurboTax find Wages and Income 

2. Find Less Common Income

3. Choose Miscellaneous Income, 1099-A, 1099-C

4. Choose Other Reportable Income

5. Enter a description of the correction and the adjustment as a negative number

[kjreneli]

Please let me clarify again, Zillow paid the S-corp BUT the 1099-K it used my personal SSN as the payee. So how do I show it as s-corp income on the 1120-s and how is it handled for my personal tax return? 

[DianeW777]

Report the income on the Form 1120-S then nominee it to the S-Corp. The 'nominee' procedure will provide the direct route and the IRS will completely understand where the income should be reported. 

Nominee returns. 

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners (your S-Corp). 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

• On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.
• Form 1099-K
• Form 1096

@kjreneli