Multiple rental properties, but only one 1099 MISC

Forum|Forum|6 years ago
June 5, 2019
2 replies
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I am 25% owner in 5 rental properties, but I only get one 1099 MISC from the real estate management company. In Turbo Tax, do I enter the one 1099 information for one property, but not the others when I am deducting expenses?

TurboTax Premier Online

PaulaM

Employee

You can enter it that way, but it will skew the individual properties income/loss. Not really a big deal though, since all the income/expenses funnel into one line (23e) on the schedule E. Same is true for the income line (23a). See attachment.

Or you could allocate the 1099-MISC across all 5 properties.

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binhanvo

Thanks. I have been doing this way for last few years and so far so good.

74bulldog

I have 3 rental properties listed on one 1099 MISC but all 3 properties are listed on the TurboTax 1099 MISC page. TurboTax will only allow me to choose one property to enter all the income. Do I have to allocate all the income to one property? How do I separate them?

BrittanyS

You do not have to allocate the income to one property. You can separate the 1099-MISC by listing each property as a separate 1099-MISC. Instead of creating one 1099-MISC, you will create three separate 1099-MISC in TurboTax and break down the information accordingly as it pertains to each property. You must ensure that the total of all three 1099-MISC entered into the program equals what was listed on the single 1099-MISC you received. To enter in TurboTax, follow these steps:

Click Wage & Income
Scroll Down to Rentals, Royalties, and Farm; Click Start next to Rental Properties and Royalties (Schedule E)
Enter information for individual Rental Property and finish interview questions
Repeat steps 2-3 for the remaining two properties.

@74bulldog

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Carolyn13180

I want to repeat back to make sure I understand. I am using simple numbers to make it easy.

So your property manager sends you a 1099-Misc for $60,000 (total rents), but he manages three properties for you: Property A rents for $10,000 a year, Property B rents for $20,000 a year, and Property C rents for $30,000 a year.

So what you are saying is that when I enter my information for Property A, I put in the 1099-Misc, but I only enter the amount of $10,000, instead of the full amount on the 1099-Misc of $60,000. Likewise, I enter $20,000 for Property B and $30,000 for Property C.

Then the IRS will see these three different amounts for the same 1099-Misc, and they will figure it out?

Please let me know if this is correct, and if not, let me know where I am wrong. Thank you very much.