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Small business income question

Forum|Forum|2 years ago
March 11, 2024
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I started a single-member LLC last year. I developed mobile apps and I added Google Ads in my app.

I had $30 earnings from Google Ads last year, but since Google Ads has minimum $100 payout threshold, I cannot payout these $30 to my business bank account, thus these money is still in my Google Ads account which shows earnings =$30 and payments =$0.

In this case, do I need to report these $30 as the business income on Schedule C?

Thanks!

Best answer by DaveF1006

No. if you use the cash basis for accounting, you will not report the income for this year since you have not received the funds.

[Edited 03/11/22|7:15 am PST]

DaveF1006Answer

No. if you use the cash basis for accounting, you will not report the income for this year since you have not received the funds.

[Edited 03/11/22|7:15 am PST]

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@DaveF1006 so if Accrual Accounting Method is used, the $30 earnings must be reported even though the payment wasn't made in 2023?

Yes, if the accrual method was used in your accounting method, then the income would need to be reported this year.

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