ERIC J
Level 4
03-10-2020
05:54 PM
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Thanks. If an activity is not regular and continuous, then it is not a trade or business reportable on Sch C. But IRS instructions say report 1099 box 7 income anyway on a Sch C. This appears to be somewhat contradictory, so I still think in this situation one option is to pay the SE tax consistent with the 1099 reporting in box 7 (if the payer of the income won't change the 1099) but report as Other Income not as Sch C. And don't take QBID. Or as someone else suggested, report on Sch C but forego QBID. I'll go with the Sch C, even though I still think it's a bit unclear in this situation. Thanks again!