1099-INT is issue to my LLC
so question
1. If i report it as normal income under business since there is NO 1099-INT reporting in business section of turboxtax, i would be paying self-employment tax on it on top of fed + state tax, right? Even if i do it, how does IRS know i clearly reported 1099-INT back
2. if i report it under 1099-INT schedule B in my personal return , how does IRS know it i properly reported since i will be putting my name in "interest belong to "?
1. If i report it as normal income under business since there is NO 1099-INT reporting in business section of turboxtax, i would be paying self-employment tax on it on top of fed + state tax, right? Even if i do it, how does IRS know i clearly reported 1099-INT back Interest earned on a bank account used by a Sch C business is NOT income to the business ... you will NOT report it on the Sch C unless you want to pay SE taxes on passive income. It is ALWAYS reported on the Sch B UNLESS you are in the business of lending money.
2. if i report it under 1099-INT schedule B in my personal return , how does IRS know it i properly reported since i will be putting my name in "interest belong to "? Even if the EIN listed on the 1099 is the one for the Sch C business you will still list the interest earned on the Sch B ... the IRS matches the income from the EIN to the personal SS# because when you applied for the EIN you linked it to your SS# ... it is just that simple.
Report the interest income on Schedule B, unless you are in the business of lending money or the interest is from notes or accounts receivable.
1. If i report it as normal income under business since there is NO 1099-INT reporting in business section of turboxtax, i would be paying self-employment tax on it on top of fed + state tax, right? Even if i do it, how does IRS know i clearly reported 1099-INT back Interest earned on a bank account used by a Sch C business is NOT income to the business ... you will NOT report it on the Sch C unless you want to pay SE taxes on passive income. It is ALWAYS reported on the Sch B UNLESS you are in the business of lending money.
2. if i report it under 1099-INT schedule B in my personal return , how does IRS know it i properly reported since i will be putting my name in "interest belong to "? Even if the EIN listed on the 1099 is the one for the Sch C business you will still list the interest earned on the Sch B ... the IRS matches the income from the EIN to the personal SS# because when you applied for the EIN you linked it to your SS# ... it is just that simple.