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Reporting 1099 and Self Employed Income under same Social

Egraham08
Level 1

HI,

 

I have a client that was 1099 contractor for a real estate company. Midyear of 2020 she started her own business LLC as a realtor and her previous contracting company began paying her business. She was paid under her social for both her business and as a contractor. How would I go about reporting both incomes separately on her schedule C since she used her social for both? Does she need 2 separate schedule C?

 

She is also in the middle of selling a home and buying a home. I'm not sure how this would change things but that was mentioned as well.

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1 Comment 1
qbteachmt
Level 15

A single-member LLC is a Disregarded entity, and is treated the same as a Schedule C business filing. 1099-NEC reporting is the same for either "entity."

"and her previous contracting company began paying her business"

They already were doing this, though. There really was no change. She is her own business and was, before deciding to file for LLC treatment, which is State, not Fed. The Feds consider her still a Schedule C filer.

"since she used her social for both?"

Because it is the same. Read this:

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...

"She is also in the middle of selling a home and buying a home. I'm not sure how this would change things but that was mentioned as well."

Is that Personal or a Flipping property activity for her business?

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