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Level 1

1099

We did a JE to move $12k from shareholder draw to rent.  How do I apply that amount to a 1099 vendor so it shows up on the 1099?

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Best answer 01-27-2020

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Highlighted
Level 15

1099

first if you have shareholders, you are being taxed as a corporation and as such there is no such thing as shareholder draw.

 

Assuming you mean owner or partner equity draw, no you can not do that since the equity draw means the owner/partner took the money out of the company for personal use.

 

Journal entries should be the exception when using QB, they often do not work as you think they should, and when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used. Journal entries also bypass accrual/cash reporting, and will not show on many reports.

 

1099 tracks ONLY cash and checks paid to the vendor from the company. And that payment must be made using the mapped expense account in 1099 mapping.

so could you explain what is happening?

View solution in original post

1 Comment
Highlighted
Level 15

1099

first if you have shareholders, you are being taxed as a corporation and as such there is no such thing as shareholder draw.

 

Assuming you mean owner or partner equity draw, no you can not do that since the equity draw means the owner/partner took the money out of the company for personal use.

 

Journal entries should be the exception when using QB, they often do not work as you think they should, and when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used. Journal entries also bypass accrual/cash reporting, and will not show on many reports.

 

1099 tracks ONLY cash and checks paid to the vendor from the company. And that payment must be made using the mapped expense account in 1099 mapping.

so could you explain what is happening?

View solution in original post

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