Hi All-
Received a 1099-MISC from the property management company for my rental, and instead of prior years where all income was reported in Box 1 (rent and utility income) they split out the utility income into Box 3. The utility income is reimbursement for utilities I pay on behalf of the tenant.
I contacted the property management company about this, and they say that this is correct, "per the new form".
TurboTax 2020 doesn't seem to like this when I enter a box 3 amount for the 1099-MISC in the Rental Properties section. It warns "You can't report other income on a rental property. You can report this income later on another form or schedule later in the Interview"
So I forged through the Interview, merrily entering all my tax info and when I get to the smart check it flags the Box 3 income from the rental 1099-MISC, it instructs to associate the Box 3 amount with the proper tax form, and shows a generated 1099-MISC with several options to choose from (Schedule C/F Form 4835, Winnings, Tribal Member, Other Income…) So I stubbornly select “Other Income” again and then Smart Check completes and says “Congratulations…found no errors”
I’m unsure what the difference is, between the initial entering of Box 3 during the Interview for Business Income, and re-confirming it during the Smart Check.
Is this the proper way to go about entering this income? I've seen some similar question with answers like entering two 1099-MISC forms for each Box amount, but won't that confuse the IRS when they only see one 1099-MISC form from the property management company?
