USA How to enter insurance proceeds on Schedule C


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I have a small online business, I have shipping insurance and last year one of my shipments went missing. My insurance provider paid out to me, I am trying to figure out how to show that on my schedule C- put it in Other income or if I just add it to my sales.

If it helps, I replaced the client's merchandise and issued a new invoice for the replacement shipment (had to to get my inventory correct). I use a cash basis so my coded deposits must match my sales so I think I count the insurance company check received as sales.

Can anyone confirm?
 
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BIG E

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By doing that you'll overstate the actual sales and the sales tax return gross sales number won't match the general ledger.
 
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By doing that you'll overstate the actual sales and the sales tax return gross sales number won't match the general ledger.
I don't know if I'm "overstating" the sales, I got money in twice (exact same amount) and shipped the same product twice.

Sales tax isn't a concern- I'm in Montana with no sales tax.
 

BIG E

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How about corporation tax?
Even though IRS calculates tax on net amount of profit, various states calculate corporate franchise tax on gross receipts.
 
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Schedule C- Sole Proprietor. So no, and Montana doesn't have that anyway.

OK, so I will just include the payment I got from the insurance in my gross sales.

Thanks!
 

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