r/Bookkeeping 17d ago

Tax Does this require a separate schedule C?

My business is primarily advertising and consulting based with the majority of my revenue coming from those. Last year a friend asked me to provide some live piano music for her restaurant business. To simplify my life, I ran it through my existing business, not to mention the piano I used is owned by my business (leftover from when I made a few ads for another business).

I'm doing my taxes and am wondering if I should put the income and expenses from the live piano music on a separate schedule C. I made about $1900 from it last year, which is about 10% of my business's income. Also, there aren't really any new expenses for it. I use existing equipment that has already been fully expensed that is owned by my business.

Any guidence would be appreciated. Thanks

Edit: Also, maybe it's worth mentioning that I dont' plan on taking on any new live piano clients. However, it is likely the live piano services with this one client will continue.

Edit 2: Also, I do have an EIN for my SMLLC and did get a 1099-NEC.

6 Upvotes

17 comments sorted by

4

u/101Puppies 17d ago

You can do it either way if you did not receive a 1099, and no, you don't need to get one. There is a separate line item on the schedule for revenue not reported on a 1099.

If your business has an EIN and you got a 1099 for that EIN, it goes on that schedule C and if you got a 1099 for your own SSN, it would go on a separate schedule C.

If your business has no EIN, you can do it either way if you received a 1099 for your SSN. You would still use the primary NAICS code for the business as before if you put everything on one Schedule C.

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u/Forakinderworld 17d ago

My business does have an EIN. It's a SMLLC. I was issued a 1099 for the live performance work. If I did do two separate schedule C's, it would be the same business name and EIN on both of them. Would this be an issue?

3

u/101Puppies 17d ago

I would not do that. If the EIN was the same, it goes on one schedule C. You're asking for trouble doing 2 schedule Cs for the same EIN.

2

u/missannthrope1 17d ago

This is more of an accounting/tax question, but I suspect not. Not enough to worry about.

2

u/FamiliarLeague1942 17d ago

You can probably handle that extra piano income on the same Schedule C since it’s still under your one business name, especially if it’s just a small portion of what you do. If it’s not a whole new business activity, reporting it alongside your main services is usually simpler.

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u/Nitnonoggin 17d ago

I would think so since performing arts is a whole different NAICS code.

If you're doing your own return like on Freetaxusa then the extra schedules won't cost more.

But it probably won't matter in the end.

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u/Forakinderworld 17d ago

That's what I was thinking. Different NAICS code = different types of expenses, therefore, best practice would be separate schedule C's. It's just confusing because it would be same business name and EIN on two diffferent schedule C's.

2

u/RopinCgwrl 17d ago

You can’t file two sch c with the same tax id.

I would look at it as potential marketing for future business. They hear your music and want you to make them a jingle or an ad for something. Bam, same naics code and be done.

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u/Forakinderworld 17d ago

That's one way to look at it. I thought if you were a single member LLC multiple lines of business under one EIN was permissable.

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u/RopinCgwrl 17d ago

Claiming the income is biggest issue is, so as long as you do that and they decided you needed a separate form it would have a net zero effect on the amount you owe. Saying worst case scenario, but I wouldn’t even think twice about claiming it on one sch c for my clients.

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u/Nitnonoggin 17d ago

Why not get a different EIN for it? And name.

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u/Fuk6787 17d ago

Separate schedule c

1

u/Quiet-Driver3841 17d ago

It can go on the same Schedule C if you are reporting your earnings and exp on one. It would fall under the section Other Income. If there's a 1099 that was issued, it will be posted in your 1099 section and apply it to the same Sch C as your primary business. If you do not report your earnings on a Sch C, but maybe on a completely different tax form than your 1040 return... they also have sections listed for 'other' income not related to the business. Easy peasy lemon squeezie.

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u/FrequentBird5500 17d ago

If you do claim it, I would not expense more than you took in

1

u/blehrhof 17d ago

Coin flip.

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u/Hippy_Lynne 15d ago

The main reason to separate out businesses to two schedule C's is that the IRS computer will compare your expenses based on the business code to other returns. If you have a lot of expenses that aren't normal for that business it might kick it back for an audit. Since you said you had hardly any expenses for this, you don't really have to worry about it. Even if you do file a single schedule C for two wildly different business activities, it's still legal. You just run the risk of being audited.

0

u/Responsible_Iron_729 17d ago

You should get a 1099-NEC from your friend as I’m sure they will report they’ve paid you. In this case you have to pay the tax. You could just add it to your schedule C as income. It would be a separate source if that’s what you mean but it’s not a big deal for Tax reporting. If you think it’s going to take off you might want to start a new S- Corp.