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socrateaser
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 38438
Experience:  Retired (mostly)
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My wife and I have a small C-Corp in TN and used the company

Customer Question

My wife and I have a small C-Corp in TN and used the company debit card for personal expenses (I now realize this is not advisable), and want to know how to properly report it as personal income. Should we use a 1099-misc or 1099-div? The company did owe us money for work we had done, but we just accessed it this unknowingly ill-advised way. Thanks.
Submitted: 11 months ago.
Category: Tax
Customer: replied 11 months ago.
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Customer: replied 11 months ago.
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Expert:  socrateaser replied 11 months ago.
Hello, A distribution from a C Corp. could be: 1. A "deemed" dividend (1099-DIV);2. Reimbursement for expenses incurred within the scope of employment;3. Repayment of a loan (principal, not income and not reportable, but interest reported on 1099-Int). The most logical tax report would be #1, because it requires no justification. Note: I don't accept phone calls, because it's illegal for lawyers to do so. No worries. I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, I receive nothing for my efforts in your behalf.Thanks again for using Justanswer!
Expert:  socrateaser replied 11 months ago.
Hello again,I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer (click 3, 4 or 5 stars) – otherwise, I receive nothing for my efforts in your behalf.Thanks again for using Justanswer!