1. I have a client that has a S-Corp business and she also worked as an Independent Contractor for several months in 2022 and 2023.
2. The 1099's she received were issued in her name.
3. She has expenses, namely mileage and some supplies and meals, to offset the 1099 income.
4. I would like to nominee the 1099 income to her S-Corp and record the offset expenses, however, I am not sure how to accomplish this, I would like to record a transaction in the S-Corp Intuit QBO, but I do not know what I should use for the the difference between the Income and expenses. I assume Shareholder Distribution, however, that would create a Capital Gain distribution to the Shareholder(She is the sole shareholder).

My questions are:

1. Is it OK to Nominee this income to her business? She deposited all the 1099 income into a personal account.
2. Is a journal entry the best course of action to record this income and expenses on the S-Corp books?
3. Should I record the offset to Shareholder Distribution? (Example Entry below)
   • Shareholder Distribution
   • Expenses
     • Nominee Income