Where do I enter a 1099 int that is associated with a rental property?

Forum|Forum|6 years ago
June 6, 2019
1 reply
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Where do I enter a 1099 int that is associated with a rental property? Do I enter it some where in the rental property section or in some other part of the wages/income section?

TurboTax Premier iOS

HelenaC

Employee

Since your rental income and your interest income are reported on your personal income tax return, enter IRS form 1099-Int under Federal Taxes, Wages and Income. There is no interest income reporting, on Schedule E Supplemental Income and Loss (From rental real estate), just rental income.

To enter your 1099-INT:

https://ttlc.intuit.com/replies/3300478

svak1

If you don't report it on Schedule E, then you don't receive the Qualified Business Income Deduction on that amount. That amount can be significant. Any other ideas about how to enter it for Rental Property?

MonikaK1

If your rental property qualifies as a trade or business, then you can include the interest income on your rental schedule.

QBI does not include items such as:

Items that are not properly includable in taxable income. Investment items such as capital gains or losses.
Interest income not properly allocable to a trade or business.

Solely for the purposes of section 199A, a safe harbor is available to individuals and owners of passthrough entities who seek to claim the deduction under section 199A with respect to a rental real estate enterprise. Under the safe harbor a rental real estate enterprise will be treated as a trade or business for purposes of the QBI deduction if certain criteria are met. For more information on the safe harbor, see News Release IR-2019-158

An interest in rental real estate that does not meet the requirements of the safe harbor may still be treated as a trade or business for purposes of the QBI deduction if it otherwise is a section 162 trade or business.

See this IRS webpage for more information on the QBI deduction.

@svak1

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