Hello,
2025 is the first full year I’ve been a landlord, so this is my first time dealing with this situation. I own a single-family home that I rent out, and since I live out of state, I hired a property management company to handle it.
The 1099-MISC issued by the property manager shows:
In TurboTax, I receive the following message:
“Your 1099-MISC has a value in box:
Box 3 – Other Income $525.00
We’ll move this form to the 1099-MISC income section for you.
Once you’ve finished adding your royalty property info, you’ll need to review all 1099-MISC income, as well as anything marked Needs review.”
After answering the questions and indicating that the income relates to Schedule E for the rental property address already entered (with uncommon situations such as farm rental income marked N/A), TurboTax then displays this message at the end:
“Select or enter the line of work that earned this income.
We still need some required info.
We’ll include this income in the Self-Employed section (Schedule C) of your tax return. You can add any other self-employment income not on a 1099-MISC later.”
I’m confused because this is long-term rental income and not an active trade or business like short-term rentals or service-based work. Could you please clarify why TurboTax is directing this to Schedule C instead of Schedule E?
