1099-MISC for TWO Landlords

[ilenearg]

I own a rental house with my brother, and we each file our own Schedule E for 50% of the income and expenses with our respective tax returns.  Our Tenant had to have a few months of his rent paid by the California Covid-19 Rent Relief Program this past year, and they have now sent ME a 1099-MISC under my name and Social Security Number for the Rental income.

How do I report that on our Schedule E so that 1/2 of it is income for my brother, and 1/2 is income for me?

[AliciaP1]

You should choose to enter the full amounts for the property on your Schedule E and let TurboTax Home & Business use the Ownership Percentage method to calculate your correct Schedule E.  To do this:

1. Within your return use the magnifying glass to search Schedule E
2. Click Jump to schedule E
3. Answer the questions appropriately until you get to the We Can Automatically Divide Your Income and Expenses for You page
4. Choose Yes, I will enter total amounts for...(property)
5. Input your Ownership Percentage
6. Continue answering the questions and complete the Rental Summary with the total costs for the property, including the 1099-MISC you received

Your Schedule E will then show your ownership percentage and apply that to the amounts.  Your brother should include his share of the 1099-MISC on his own return as well.

[ilenearg]

So, even though the 1099 was issued to MY SSN, the program (and the IRS) will realize it's for BOTH of us when TurboTax calculates the 50% income/expenses from the rental property on Schedule E when I just input 100% and say I own 50%??  If so, that sounds like the EASY way to do it!

[AliciaP1]

Yes, that is the best way!