Question

Tax Year Prior to 2020: Since there is a special rule that you do not report residence rental income if it is for less than 15 days how do we report this since we received a 1099-Misc for it?

Forum|Forum|6 years ago
March 13, 2020
2 replies
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We rented a second home our for 3 days but we received a 1099-Misc for this income from the rental agent. How do we report this for taxes since we would likely be flagged by the IRS if it doesn't appear on our return?

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ColeenD3

Enter the income and the expense it using the exclusion, rented it for fewer than 15 days.

S

sladkni

Where on the Turbo Tax form do you note the 15 day exclusion? Do you report on Schedule C and put in the exact same amount as expense?

V

VictorW9

First, enter the 1099-MISC for the 14 days or less rental in the Less Common Income section, Miscellaneous income, Other Reportable Income. Enter a description, '14 day rental exclusion' and the amount.

Second, repeat the steps but for the amount, enter as a negative number. In effect, you have cancelled the income amount.

The two entries will show on line 21 of your 1040, but a taxable amount of zero.

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