How to correct 2021 time share rental income already reported to IRS, now reported on 2022 1099

Forum|Forum|3 years ago
February 26, 2023
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I never received a 2021-1099 for my timeshare rental income but reported it on my 2021 income tax return and offset it with the expenses. Now, I received the 2022-1099 for the timeshare rental income and it reported both the 2021 and 2022 income. Even though it was earned in Dec 2021. It was not paid till Jan 2022. They are saying since I'm not a business, it is not reported when earned but received. How does this have to be corrected. Do I have to submit a revised return and remove the income? Can the expenses be deducted?

MinhT1

As an individual taxpayer, you use the cash method. Income is reported when received and expenses can be deducted when paid.

It is correct that your form 1099-MISC for 2022 includes rent for December 2021 but paid to you only in January 2022. You should report this rent in 2022. You can deduct expenses paid in 2022.

If you believe that you had included that rent in your 2021 tax return, you can amend your 2021 tax return. If expenses for 2021 have been misreported, they should also be amended.

To amend your tax return, please read the instructions in this TurboTax FAQ.

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