D Eckerman Posted April 16, 2007 Report Share Posted April 16, 2007 Bar owner recieved a grant of $6,000 from State of WI, Dept of Commerce... Is it sch C - SE taxed or line 21. I will find out more but I imagine it was some sort of grant for selling his business - which did not go thru or remodeling??? Thx d Quote Link to comment Share on other sites More sharing options...
Marge Posted April 16, 2007 Report Share Posted April 16, 2007 A grant is usually money that does not have to be paid back and I always thought of them as gifts. What type of income does it say it is on the 1099-G? It probably is NOT sch C income because he did not work to get the grant. Find out from the client what it was for and then go from there. Marge Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted April 16, 2007 Report Share Posted April 16, 2007 Bar owner recieved a grant of $6,000 from State of WI, Dept of Commerce... Is it sch C - SE taxed or line 21. I will find out more but I imagine it was some sort of grant for selling his business - which did not go thru or remodeling??? Thx d Maybe not income but an offset to an expense (remodeling) that was claimed on Sch C? Quote Link to comment Share on other sites More sharing options...
OldJack Posted April 16, 2007 Report Share Posted April 16, 2007 It is probably not really a tax-free grant but payment for historic remodeling which would be other income subject to SE tax since the taxpayer worked the remodel job to earn the credit/payment. I have owner/contractors rehabbing old buildings that get state or federal historic credits that they sell at the bank. Quote Link to comment Share on other sites More sharing options...
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