1099-Misc box 3 on rental property

Forum|Forum|1 year ago
March 17, 2025
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I own ranch land that I lease to a rancher for a flat fee so therefore use Schedule E. A utility company is interested in installing transmission lines on my property and paid me a fee to do a survey. This company issued a 1099-Misc with the amount listed in box 3 “Other Income”. TurboTax will not allow this entry under Schedule E. The land is owned by my sole proprietor LLC and is a disregarded entity. How do I enter this income in TurboTax?

TurboTax Premier Online

DianeW777

It depends. You can use Box 3 and it will be listed as 'Other Income' or you can enter it on Schedule E yourself and delete the 1099-MISC.

For Other Income follow use the information. It's important for you to select 'None of these apply" and then you should also select the following:

'No' on the screen 'Did the '____' involve work that's like your main job?'

'No' on the screen 'Did the '____' involve an intent to earn money?'

This will report the income without any business activity and it will show up on Form 1040, Line 8 (From Schedule 1, Line 8z).

Click the link to delete this form 1099-MISC and enter it directly as rental income.

If you're using TurboTax Online software and need to delete a form, click here.
If you're using TurboTax Desktop software and need to delete a form, click here.

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