Hello Turbo Tax Community,
I am searching for an answer regarding a 1099 MISC and Schedule E.
Please allow me to provide a description of the situation.
My parents home was destroyed during Hurricane Michael and I had to rent a home for them while repairs are made.
The “temporary housing agency” which was brought in by the insurance company required that I complete a W-9 instead of the business that owns the property that we are renting.
Moreover, they insisted that I receive the rental payments and forward them directly to the owner/landlord, which I did.
I now know that I should not have been asked to complete the W-9 but at the time I had no idea what I was being asked to do in the midst of trying to get my parents settled.
Because of this W-9 I received a 1099-MISC which states that I (the renter) made $4200 in rent, which I did not.
I contacted the temporary housing agency and asked if they could correct this matter, retract the W-9 and issue it to the company who owns the home.
The temporary housing agent stated that they would not correct the form that that I should “ complete a Schedule E and somehow reverse the income as a loss”.
I am at a complete loss as what to do, I have reviewed the Schedule E and it frightens me terribly.
I would be required to state that I own the rental home among a litany of other questions pertaining to fair market rent, carry overs, and rental types. All questions that I have no answer to.
I fear that if I proceed to file my taxes with a Schedule E I will be audited.
Can anyone advise if the temporary agency should correct the W-9?
If the answer is no, should I file a Schedule E and how would I reverse this income as a loss.
Thank you all for your time and assistance.
