Question

I am partial owner of a rental property of which I receive a 1099. How do I override Trubo Tax to show the 1099 income rather than a percentage of the 1099 income?

Forum|Forum|6 years ago
March 2, 2020
2 replies
0 views

Based on my percentage of ownership, Turbo Tax takes my 1099 rental income then calculates a percentage of the 1099 rental income based on the percentage of ownership. The rental income on the 1099 is what I received for tax year 2019. Example a rental income on a property is $100,000 for the year. My ownership is 5% so I receive $5,000 of rental income and that amount appears on the 1099 I receive. When I input the $5,000 for the 1099 rental income, Turbo Tax applies my 5% ownership on the $5,000 income resulting in only showing income of $250 for tax year 2019.

TurboTax Premier Online

H

HelenC12

Last year you probably chose that you were a partial owner in the property. You indcated that TurboTax should do the math for you. You'll need to change the property ownership to 100% or type in 100% of the gross rent received for everybody, so it calculates only your share.

Type rentals in the search bar and click on the Jump to link in the results box.
Continue with the onscreen interview until you get to the Rental and Royalty Summary screen. Edit the rental property.
On the Review Your XXX Rental Summary screen, Select Start/Update next to Property Profile.
Continue with the onscreen interview until you get to the Property Ownership screen.
Select Yes, XXX owned 100% of the XXX address. Continue with the onscreen interview until complete.

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Y

yfeng-us

I did 1, but in 2, after answering a bunch of questions, I get taken to the "tax deductions and credits" screen, and cannot seem to access the "Rental and Royalty Summary" screen. Is there any other way to get to change the ownership? Thank you.

M

mglauner

@yfeng-us If this is the first year you are reporting Rental Income, type 'schedule e' in the Search window, then click on 'Jump to schedule e' to get to the Rental section.

You can change your Ownership % in 'Property Info or Property Profile'.

If this is an ongoing rental property, you may not want to change the % in TurboTax, but enter amounts that reflect your % of Income and Expenses.

Click this link for more info on Allocating Rental Income and Expenses you may find helpful.

Carl11_2

Employee

This is why I suggest for those in your situation, to report 100% ownership and only enter their share of *everything*. But since you chose to let the program do the splits for you in a prior year, it's a real PITA to go changing ownership percentages now, as it will screw up quite a bit, including carry over losses and more importantly, prior year's depreciation already taken.

So if you are a 50% owner, enter double the amounts shown on the 1099-MISC and the program will split that to your actual 50%.

When this property is sold, chances of incorrectly reporting the sale of your share is going to be high. Just a "heads up" warning so you'll know to pay attention to detail in the tax year of the sale.