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Grant $5000 Lendistry in CA

Forum|Forum|4 years ago
February 8, 2022
3 replies
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Thanks in advance.

Is $5000 grant from Lendistry in CA taxable?

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This topic has been closed for replies.

Best answer by qbteachmt

"From Lendistry" isn't the meaningful part.

"Grants from $5,000 to $25,000 to eligible small businesses and nonprofits impacted by COVID-19 and the related health and safety restrictions. Lendistry has been designated by the state to act as the intermediary for the Program to disburse the grant funds."

That means you need to understand the Grant, not who is administering it.

Bookmark this:

https://gpwcpas.com/grant-credit-loan-and-other-relief-comparison-chart/

And watch for newer info, meaning, the dates on web resources will matter, relative to the tax year you are working on and to the Assembly actions, including retro-active bills.

Just-Lisa-Now-

Intuit Community Champion

Put that exact question into Google and you should find what you need.

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HOPE2Author

Level 7

Thanks. I searched it and used other link here were very helpful, it is federally taxable but is not taxable for California. My question is if it goes to SCH C should have QBI and SE tax as well but it is not as like as other business income since it is a grant.

What is your idea? And how about payer's info.

qbteachmtAnswer

Level 15

"From Lendistry" isn't the meaningful part.

"Grants from $5,000 to $25,000 to eligible small businesses and nonprofits impacted by COVID-19 and the related health and safety restrictions. Lendistry has been designated by the state to act as the intermediary for the Program to disburse the grant funds."

That means you need to understand the Grant, not who is administering it.

Bookmark this:

https://gpwcpas.com/grant-credit-loan-and-other-relief-comparison-chart/

And watch for newer info, meaning, the dates on web resources will matter, relative to the tax year you are working on and to the Assembly actions, including retro-active bills.

Don't yell at us; we're volunteers

HOPE2Author

Level 7

Thanks for helping.

Should it, 1099-G, consider as other income or business income for SE tax? If yes, what if the client has no Sch C in 2021?

wjgutcpa

Level 5

Did you get a copy of the grant agreement related to them getting 5,000?

HOPE2Author

Level 7

Perfect and thank you awesome community..

Is it included SE tax, Sch C worksheet asks us "ALL INCOME SUBJECT TO SE TAX"? If no, how to adjust SE tax to zero for these grants.

Also, which line on Schedule C should be entered for this taxable grant?

Still confusing to find a way how to enter this 1099-G in client return.

If client have not have SCH C for 2021, can I consider this 1099-G for OTHER INCOME?

qbteachmt

Level 15

Once again:

They have a Sched C for 2021, if they got this money in 2021, because this is Business Income.

Like regular business income. Which makes it the same as business income. Because it is Business Income. The same as Doing Business and getting paid.

Which means it is subject to SE tax.

It goes on Line 1 for the Sched C, where you put business income.

The Client needs you to include Sched C, because this is Business Income.

Don't yell at us; we're volunteers

HOPE2Author

Level 7

Appreciate it.

How about Payer's info.

I am new in Proseries

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