Does my rental income on Form 1099 - G mean the same as 1099 - K?

[franlewstein]

Does Form 1099-G mean the same thing as Form 1099-K?

[AmyC]

Very different creatures. Rental income does not goes on 1099G.

The G is for gambling, state refunds and unemployment generally.

The K is a passthrough form - from a business.

[Carl]

No, not at all. The 1099-G is not used to report rental income of any type. I suspect you got some kind of relief from the state for the loss of rental income due to COVID. What box is it reported in? Box 6 par chance?

[ostace]

I think G is government, the 1099G's I recieved both came from the state, 1 as unemployment and the other from the State Department of Homeland security - the latter was recieved as COVID rental assistance. I have a question out there asking about how not to get it to link to the property in place of a 1099k or misc. I don't want to be taxed twice on the amount.

[ostace]

Box 6 - taxable grant has the amount I recieved as the COVID rental assistance. How do I link this to the property to get the amount recieved to show as rental income? I don't want to be taxed twice on it.

[DawnC]

You don't need to link it to the property.   Delete the income you entered with the property (either as a 1099-K or MISC or?) and leave the 1099-G box 6 income in the Other Income section.   The money is taxable (ordinary income) there, but it is not subject to self-employment taxes and if you link it to the property, it will generate self-employment tax.    This way, you are only taxed ordinary income tax ONE time.    If Box 8 of the 1099-G is marked, that would indicate that the income is business income.   In that case, an adjustment to your self-employment tax would need to be made.   

Enter the 1099-G from the Other Common Income section if you have taxable grants to enter.    Use the OTHER 1099-G section.

[Carl]

if you link it to the property, it will generate self-employment tax.

Just FYI/Reminder that SCH E income is not subject to SE tax. But a taxable grant is exactly that - a taxable grant. Doesn't matter what it was for either.  This particular situation means you'll have that much less to report on the SCH E itself, and will most likely just increase the PAL carry over loss by the amount of the grant, on the 8582.

[skowronek]

TL;DR:

How does one, "increase the PAL carry over loss by the amount of the grant, on the 8582" in TurboTax? @Carl 

In reporting the 1099-G "income" through personal income rather than on the rental property, my deduction for the rental property loss is zero. How do I report the rental income "loss" for not having received actual rental income, instead I now have received taxable grant? (now I know understand why landlords avoid gov. subsidies for rent.) Is there screen in the step-by-step that will account for the PAL?

So if the tenant paid $5k rent themselves, and the 1099-G had $10k from the state, and I would have entered $15k in the Rental Properties and Royalties as rental income for my property. How would I enter the loss for non-payment of rent if I have to report the taxable income differently?

Rental Income: $5k

Loss: $10k (tenant didn't pay rent)

Totally different outcome for my rental now with regards to deductions, etc.

1099-G Income: $10k (shows up on my personal now and taxed differently)

TT shows I should have paid much in taxes now.

Thanks.

[Carl]

How would I enter the loss for non-payment of rent

There is no such thing. You can't claim a loss, for that which you never received in the first place. You just have less rental income to report.

[skowronek]

First, thanks for the reply. My statement was more figurative. I obviously haven't actually lost rents, it was paid by the government. In reporting it with common income rather than on the schedule e, it changes my 2021 taxes due +$2,358, when it's not being reported as rental property income.

[skowronek]

I found another thread on this recommending an alternative approach.

https://ttlc.intuit.com/community/taxes/discussion/1099-g-taxable-grant-and-schedule-e/00/2489739