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Level 2
posted Mar 24, 2024 11:46:16 AM

How do I report a 1099-MISC for rental income when I don't own the property?

I get income for a nearby wind turbine. The 1099misc reports it as rental income, which makes it hard to answer questions. May I report it as a royalty instead?

I do not own the property the turbine is on.

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1 Best answer
Expert Alumni
Mar 25, 2024 8:32:53 AM

No, you must report the income from Form 1099-MISC exactly as it appears. The IRS receives a copy and will expect to match that income with your tax return.

 

Use your own address for the "rental" property (or the address of the payer from the 1099), since you don't own the land where the turbine is located. Indicate that it was rented all year and that you "own" 100%. For your situation, enter only the property profile and the rental income.

 

[edited 4/23/24 | 1:07pm PDT]

2 Replies
Expert Alumni
Mar 25, 2024 8:32:53 AM

No, you must report the income from Form 1099-MISC exactly as it appears. The IRS receives a copy and will expect to match that income with your tax return.

 

Use your own address for the "rental" property (or the address of the payer from the 1099), since you don't own the land where the turbine is located. Indicate that it was rented all year and that you "own" 100%. For your situation, enter only the property profile and the rental income.

 

[edited 4/23/24 | 1:07pm PDT]

Level 2
Mar 27, 2024 10:40:37 AM

Thank you very much for your prompt response.🙂