1099-G DEPT OF COMMERCE - SCH C OR LINE 21?

[D Eckerman]

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

[Marge]

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

[Janitor Bob]

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?

[OldJack]

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.