I received a 1099-MISC. Do I need to report rental income?

Forum|Forum|2 years ago
January 24, 2024
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I received a 1099-MISC, box 1 Rents is showing a payment of $7,500. This will be my only income source for the year. I read on the IRS website that since I am over 65 and earned less than $14,700 I do not have to file a return. Do I still need need to file a tax return and report the rental income on schedule E?

MinhT1

Yes, you should report your rental income, even if it results in no tax due.

The reasons are:

1. In reporting your rental income, you can also deduct depreciation and rental expenses. If you had a net income, there will no tax due as the rent is below your standard deduction. But if you had a loss, this would be a passive loss. These losses will be suspended as you have no other passive income to offset them. But when you sell your rental property, you can deduct these suspended losses from your capital gains.

2. Remember to deduct depreciation. If you do not claim depreciation, you will still have to recapture it and pay taxes on the recapture.

Please read this TurboTax Help article on how to report rental income and expenses.

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