I have rented a portion of my house long term for a portion of the year for a below market value rate to my church. I have received a 1099-MISC for the rents I received for the year and am unclear how to report it.
When I report my 1099-MISC form, TurboTax offers 4 choices of where I want this income reported: Schedule E Real Estate Income, Schedule C Business Rental of Personal Property/Equipment, Farm Rental Income, or Nonbusiness Rental of Personal Property/Equipment. I am guessing I choose the last option (the nonbusiness one since below market rent is not reported on any Schedule)?
As I understand it, you are normally supposed to report below market rents on Form 1040, line 21 (on TurboTax, Less Common Income -> Miscellaneous Income, 1099-A, 1099-C -> Other Reportable Income). However, when I attempt to report my 1099-MISC income this way, TurboTax states in bold print, "Do enter income reported on Form 1099-MISC." So, I don't know how to report it then.
Would appreciate any help! 🙂
