Question

How to enter timeshare rental income reported on 1099-MISC

Forum|Forum|4 years ago
April 9, 2022
1 reply
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I used some of the timeshare points I own to make 4 reservations (at 2 different resorts in 2 different states) to rent out. The rental agency sent me a 1099-MISC for the gross revenue. To enter the amount on the 1099 into Turbo Tax Premier, I selected “Update” 1099-MISC in the section “Other Common Income”. I had to enter the amount from Box 1 (rents). For source of the income, I selected “rental of real estate”, and a Schedule E questionnaire was generated.

Was that the right thing to do?

To describe the property, I wrote in “Timeshare” and was asked to provide the location.

Since there were 2 locations, will I be able to enter both in Turbo Tax? Will I be able to enter the rental income and expenses from each location, as can be done on the paper version of Schedule E?

No one actually owns a particular unit, only the points to make reservations, so it is impossible to know how many times each unit is used by a timeshare owner vs rented to a non-owner.

Do I enter the number of days the units were rented on my behalf as the fair rental days?

The total number of days family members or I stayed at various properties/resorts = 47. Of those 47 days, 4 were at one of the rental locations, though not likely in one of the units that were rented.

For personal use days, should I enter 4 for that location and 0 for the other?

LeonardS

You may enter your Time Share 1099-MISC without the program generating a Schedule E.

To add your 1099-MISC for your Time Share Income without a Schedule E follow these steps:

Open or continue your return, if you're not already in it.
Search for 1099-MISC and select the Jump-to link.
On the page 1099-MISC summary check Add a 1099-MISC
Answer the questions on the page Let’s get info from your 1099-MISC.
On the page Describe the reason for this 1099-MISC enter the reason for the 1099-MISC
Answer Does one of these uncommon situations apply?
Answer Did this involve work that's like my main job?
Answer How often did you get this income?
Answer Did this involve an intent to earn money?
Answer the remaining on-screen questions.

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S

SO49Author

I went through steps 1-4 as instructed. At the bottom of page 4 were boxes numbered 1-3, as on the 1099. When I entered the amount in Box 1 (Rents) I was taken to page "Source of 1099-MISC Income". There were only four choices:

Rental income from the rental of real estate (Schedule E)
Income for your business from rental of personal property or equipment (Schedule C)
Farm rental income
Nonbusiness income from the rental of personal property or equipment

I was not asked any of the other questions. Did I do something wrong?

AmyC

Employee

This is option 4, nonbusiness income from the rental of personal timeshare property you own. It isn't a regular rental or a business or a farm. You have it!

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