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Redirect 1099misc income to 1120s

Strive4Balance
Level 2

How do you redirect 1099 misc income (box7) to not show on sched.C, but to calculate on 1120S?

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Strive4Balance
Level 2

The agreement is between the r.e. company and the individual.

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IRonMaN
Level 15

Tax preparation doesn't normally involve conducting a magic act.  Who were the checks made out to?  

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Strive4Balance
Level 2

Thank you for responding so quickly.  The 1099 was issued to the individual, under his social, but it's for Real Estate transactions that are conducted under his business (S-Corp).  Another preparer that I work with said to just redirect the income so it doesn't generate a sch.C, but failed to show how to do that in Lacerte.

 

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IRonMaN
Level 15

But if the checks were paid to him, it should go on his return.  If he wants it to be reported on the Sub S, then the checks should be paid to the Sub S.  Who is the business agreement with - him and the real estate company or his Sub S and the real estate company?

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Strive4Balance
Level 2

The agreement is between the r.e. company and the individual.

View solution in original post

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abctax55
Level 15

I would "re-direct" the issuer of the Form 1099 to prepare a corrected on IF appropriate (after answering IronMan's excellent questions.

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Strive4Balance
Level 2

I agree with your answer and IronMan's questions that are directing me to the answer that I believe to be true.  I guess there's a "right" and "Ethical" way to complete, and then there's a "manipulating the program" to produce an outcome that you want.

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qbteachmt
Level 15

"I guess there's a "right" and "Ethical" way to complete, and then there's a "manipulating the program" to produce an outcome that you want."

Uh, no; there is the Right way to do it under your professional responsibility, and the "ethical" way would be to confirm the issuing of the 1099-Misc was correct or corrected.

You used the words "the r.e. company and the individual" but didn't clarify is this "r.e. company" is that person's S corp for which they are employed as an employee? Because the individual doesn't get a 1099-M from the S corp for which they work and/or are a shareholder.

Did you perhaps want to give more details with clarity over who is whom and had which role in the issuing of the 1099-M, the recipient of the 1099-M, and the activity that prompted the issuing of the 1099-M?

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Strive4Balance
Level 2

The "individual" is the one receiving the 1099Misc from the real estate company.  The "individual's" business is an SCorp from which he pays himself from a W-2 (which he's supposed to).  The only income that's received for business rendered is from the 1099Misc that the real estate company provides to the "individual" with his SS#, NOT the SCorp's EIN #.  My question being, how do you redirect the income to reflect on 1120S instead of being entered on a 1040  and generating a Sched.C?  If questioned by the IRS, There needs to be a way of showing that the income is from services provided from the SCorp and not from the "individual" per say.   Am I correct in my thinking? PLEASE ADVISE

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abctax55
Level 15

Did anyone notify the RE company of the S-Corp status of the *individual* that the RE company was issuing checks to?

Did your client not "notice" the checks weren't made out to his/her S-Corp?

IS there even a Corporate checking account?

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qbteachmt
Level 15

Your taxpayer submits a W9 to the RE company, which then issues a corrected 1099-M to the SSN that has 0. An S Corp wouldn't have been issued a 1099-M at all. Your taxpayer needs to fill in the W9  appropriately to show this is an S Corp with the S Corp FEIN on it.

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