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Rental income error on turbo tax

Forum|Forum|6 years ago
March 15, 2020
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Hi,

We rented out our home for 11 days in 2019. It was our home for 262 days of the year. The rental management company sent us a 1099-Misc for $2000 however, I think this is the security deposit which they are holding.

Any way, when I add this income to Personal Income section of turbo tax, it makes us go back to Business section and walks us through Schedule E and determines that this cannot be used because the property was rented for less than 15 days and removes it. When I come back to Personal Income sectio, it says there is $2000 in rental income that you have to declare and we are back on the hamster wheel.

How should I report this income?

Thanks!

Best answer by ColeenD3

Yes. That is a precaution for those who might enter self-employment income there. However, do indicate that it was on a 1099-MIsc Box 1 so the IRS can match it.

ColeenD3

You will have to include it as "other income" and then back it out again, stating "fewer than 15 day rule".

Please follow the instructions below to report your cash (check) income on line 21:

Click Federal Taxes -> Wages & Income and scroll down to Less Common Income
Go to the last selection, Miscellaneous Income and click Start
Go to the last option, Other reportable income and click Start
When it asks, "Any other reportable income?" say yes and then type in a description and the amount to report it on your tax return.

Example:

A

arrestedcloudAuthor

Hi,

@ColeenD3 Do you mean here ? Also we did not receive this income, this is a security deposit held by the management company.

Even though we received a 1099-MISC for this?

Thanks!

ColeenD3Answer

Yes. That is a precaution for those who might enter self-employment income there. However, do indicate that it was on a 1099-MIsc Box 1 so the IRS can match it.