Client received a 1099-k ($106k) / LLC/sole proprietor. Accrual accting & 96k is unearned rev. What form do I use to capture this....form 3115 p4-5 maybe?

[lilpe551]

The client collected the funds the last 4 months of 2018. Her customers are on  payment plans for 8 months before the trip. AR balance is 83k.

[George4Tacks · Accepted solution]

I would report the 1099-K, plus any other receipts as gross revenue. I would then make an "other expense" as "1099-K accrual adjustment". Next year the "1099-K accrual adjustment" might be as other income. 

[lilpe551]

Thanks for the help. I was completely lost.