1099 MISC issued to renter instead of the business owner, now I am being forced to pay their taxes.

Forum|Forum|7 years ago
January 29, 2019
2 replies
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Hello Turbo Tax Community,

I am searching for an answer regarding a 1099 MISC and Schedule E.

Please allow me to provide a description of the situation.

My parents home was destroyed during Hurricane Michael and I had to rent a home for them while repairs are made.

The “temporary housing agency” which was brought in by the insurance company required that I complete a W-9 instead of the business that owns the property that we are renting.

Moreover, they insisted that I receive the rental payments and forward them directly to the owner/landlord, which I did.

I now know that I should not have been asked to complete the W-9 but at the time I had no idea what I was being asked to do in the midst of trying to get my parents settled.

Because of this W-9 I received a 1099-MISC which states that I (the renter) made $4200 in rent, which I did not.

I contacted the temporary housing agency and asked if they could correct this matter, retract the W-9 and issue it to the company who owns the home.

The temporary housing agent stated that they would not correct the form that that I should “ complete a Schedule E and somehow reverse the income as a loss”.

I am at a complete loss as what to do, I have reviewed the Schedule E and it frightens me terribly.

I would be required to state that I own the rental home among a litany of other questions pertaining to fair market rent, carry overs, and rental types. All questions that I have no answer to.

I fear that if I proceed to file my taxes with a Schedule E I will be audited.

Can anyone advise if the temporary agency should correct the W-9?

If the answer is no, should I file a Schedule E and how would I reverse this income as a loss.

Thank you all for your time and assistance.

Best answer by PaulaM

Report it as Misc Income in the Less Common Income section for the $4,200. Then make a second entry in the same section for a -$4,200. That way you are disclosing to the IRS the form 1099-MISC, but the net effect will be zero for you. Keep good records of the events you described.

PaulaMAnswer

Employee

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MaryTLAuthor

Employee

Thank you Paula! I will follow your instructions.

PaulaM

Employee

You are welcome! :)

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Anny P

I can’t find the way to report this 1099-MISC if I’m not the owner of a property. I received a rental relief. Need help ASAP

DianeW777

This income can be reported as 'Other Income' by using the steps below.

Go to the Wages and Income section of TurboTax

Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
Select Other reportable Income > Enter a description (Rent Relief) and the amount

If you need additional assistance please provide more details about how you received this income.