1099 MISC For payment to purchase C-Corp stock

Forum|Forum|1 year ago
April 10, 2025
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A majority family owned corporation I already owned stock in issued me a one time check so I could make the 'down payment' on shares from my parents which I now make a monthly payment for. I was given a 1099 misc. This wasn't for wages (although could be argued as such) but a onetime payment for an investment in the c-corp to make me majority shareholder. How or where would I list this? Using Turbo Tax home and biz.

TurboTax Home & Biz Windows

ThomasM125

I assume you don't have to pay the money back, so it would not be a loan. That being the case, it would likely be considered a dividend by the IRS since it came form a C corporation. You could enter it as such in TurboTax, using a From 1099-DIV entry, Your other option would be to report it as "other income" by virtue of the form 1099-Misc entry in TurboTax. If you do that, indicate that the income was not earned in the prior or next year, that it wasn't associated with your main job and you didn't have a profit motive to receive it. That will result in it being treated as non self-employment income.

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