Question

How should I categorize my 1099 MISC? It was a payment to me as a finder's fee from a real estate company intended for my dad, but he passed and they sent it to me.

Forum|Forum|5 years ago
February 24, 2021
1 reply
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He was a licensed mortgage broker at the time and connected someone who wanted to refinance his properties with a different mortgage company. He was then entitled to the finder's fee from the mortgage company and then he passed away. The mortgage company sent the money, around $12K, and a 1099 MISC to me as other income. I was originally going to get a refund, but this makes me owe a lot of money when I tried entering it.

TurboTax Self Employed Online

J

JawnyUtahAuthor

I guess my follow on question is, should I ask the company to see if they can give it to me as a gift? I did not actually do the work to receive the money so it seems weird that I am getting a tax form as if I did.

ColeenD3

You are getting a tax form because you got the money. You may not have earned it, but you did receive it. It is not self-employment income, as that is no longer reported on Form 1099-MISC. It can be reported as other income.

Follow these steps.

Wages & Income
I'll choose what I work on
Less Common Income select Start (or Update) for
Miscellaneous Income.
Other reportable income and you can enter your own description(s) and amount(s).

J

JawnyUtahAuthor

Thank you.

What should I categorize this as? Turbotax gives me: Rental Income from the rental of real estate, Income for your business from the rental of personal property or equipment, farm rental income, nonbusiness income from the rental of personal property or equipment.