Business vs Personal Income 1099 Misc

Forum|Forum|6 years ago
February 9, 2020
1 reply
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I have inherited farm land that has been rented out for many years prior to my inheriting. I have a 3rd party that has farm manager over see the lease, collection of rent, property tax payments etc...that I pay a fee for. With the 3rd party that manages (a bank) I have a POA contract that stipulates and lease longer than 1 year or where the rent does not increase that I have to sign the lease for it to be in effect. The income from the renter is reported to me on a 1099 MISC. Is this a valid business income or should it be treated as investment income? If investment where would I deduct my expense such as the property taxes, management fees, and potential travel expenses?

TurboTax Home & Biz Windows

DaveF1006

Level 15

You would actually report this on Schedule E. because you are a Landowner (or sub-lessor) that received cash rent for pasture or farmland based on a flat charge. The parameters are laid out in this following turbo tax link. in Schedule E, you are able to deduct those expenses as you mention above. Here is how to report.

1) Log into Turbo Tax>take me to my return

2) Federal>wages and income>show all income>

3) Go to Rents, Royalties, and Farm>Farm Income and Farm rental

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