Schedule E is the proper way.
But, tax wise, you come out the same, if you enter it as other income on line 21 of form 1040.
You will have to use a work around in TurboTax.
In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages &
Income
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose –
Other reportable income (- reimbursed deductions
from a prior year
- On the next screen, click
yes
- On the next screen, you'll
get blanks to enter the amount and a description. I suggest "misc. income in box 1 of 1099-Misc" It will go on line 21 of form
1040 as "Other Income"
