How to record Nominee Business Income in Intuit QBO?
- I have a client that has a S-Corp business and she also worked as an Independent Contractor for several months in 2022 and 2023.
- The 1099's she received were issued in her name.
- She has expenses, namely mileage and some supplies and meals, to offset the 1099 income.
- I would like to nominee the 1099 income to her S-Corp and record the offset expenses, however, I am not sure how to accomplish this, I would like to record a transaction in the S-Corp Intuit QBO, but I do not know what I should use for the the difference between the Income and expenses. I assume Shareholder Distribution, however, that would create a Capital Gain distribution to the Shareholder(She is the sole shareholder).
My questions are:
- Is it OK to Nominee this income to her business? She deposited all the 1099 income into a personal account.
- Is a journal entry the best course of action to record this income and expenses on the S-Corp books?
- Should I record the offset to Shareholder Distribution? (Example Entry below)
- Shareholder Distribution
- Expenses
- Nominee Income
