The best solution would be to ask the payer to provide you with a 1099-MISC. I would not recommend you report this as rental income and if you do, you should be prepared to justify your position.
In answer to your question if the 1099 was strictly for rental income then it should be reported on a 1099-MISC and you would include it on schedule E as 'Rental Income.'
However, if it included other income for work or material then you should report it as other income 1099-NEC.
1099-NEC
Use this form to report payments of $600 or more to gig workers, independent contractors, unincorporated service providers, and vendors (individuals or LLCs) that performed work for you related to the rental business. This can include:
Repairmen
Plumbers
Carpenters
Landscapers
HVAC professionals
Locksmiths
Cleaning services
COVID-related services such as sanitizing services
According to the IRS, 1099-MISC forms still are required for payments which include Rental Income.
1099-MISC:
The 1099-MISC form will now be used for two reasons a property management company will now use the 1099 MISC form is to report payments of over $600 in a calendar year for:
- Rent sent to owners (owner disbursements, also called owner distributions) and
- Attorney fees such as to handle an eviction or collect unpaid rent (even if the legal services were provided by a corporation).
Beginning with the 2020 tax year, the IRS will require business taxpayers to report nonemployee compensation on the new Form 1099-NEC instead of on Form 1099-MISC. Businesses will need to use this form if they made payments totaling $600 or more to a nonemployee, such as an independent contractor.
