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Investors & landlords
Thank you for the clarification. What you need to do in TurboTax is report Form 1099-MISC as received, remove it, and finally include it with your Rental Activity.
Enter Form 1099-MISC following these steps:
Step 1; Enter Form 1099-MISC as received.
- From the left menu, select Federal, which will open to the Income & Expenses tab.
- Scroll down to Other Common Income and select Show More.
- Select Form 1099-MISC and enter your details.
- Go through the questions, but for now, answer No to Did this involve the intent to earn money? so that the income is not put on a Schedule C.
- Finish any other questions. You will eventually select Done.
Step 2: Enter Form 1099-MISC as an offsetting, negative amount.
- Back at Income & Expenses, where TurboTax returns after entering Form 1099-MISC, scroll all the way to the end to find Less Common Income and Show More.
- Scroll down to Miscellaneous Income, 1099-A, 1099-C and select Start.
- Scroll all the way to the last option, Other reportable income and select Start.
- Any Other Taxable Income? answer Yes.
- For Description, enter Form 1099-MISC Other Income reported on Schedule E and enter the amount as a negative. For example for negative $100, enter -100.
Step 3: Enter the amount in Box 3 of Form 1099-MISC for your Rental Property.
- Back at Income & Expenses, scroll down to Rental Properties and Royalties (Sch E) and select Edit/Add.
- Select the rental property associated with Form 1099-MISC and select Edit.
- Select Add Income.
- Enter the amount in Box 3 of Form 1099-MISC under the first option, Cash, checks, Form 1099-K, etc. to report Form 1099-MISC received for rental assistance and Continue.
The rental assistant programs differ state to state. The requirements of the assistance should be reviewed to verify that it is taxable, needs to be reported and whether it will be taxable at the federal and/or state (if your state collects income tax) levels.
[Edited 02/08/2021 | 6:02 AM PST]
ā€ˇFebruary 8, 2021
5:27 AM