There are several ways to do the "enter the 1099-Misc then do a deduction to get to zero" technique in TurboTax.
1. Enter it on Schedule E as described above. When asked the number of days rented, enter something more than 15. When you get done, with the rental section, go back and change it to the actual number of days rented. That should save the schedule E.
2. Report the income as misc line 8, Schedule 1 income (enter in TurboTax at the 1099-Misc screen) . Then enter a line 8 deduction, for the same amount. In TurboTax (TT), enter at:
- Federal Taxes tab
- Wages & Income
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other reportable income - Answer yes to Any other Taxable Income -On the next screen, Enter the number with a minus sign (-) in front. Briefly explain at description.
