How to enter a 1099-misc for rental less than 14 days..."schedule e" gives me an error because it is less than 14 days and therefore not taxable.

When you receive a 1099-misc for  home rental income 14 days or less enter the amount in the Less Common Income section,: Miscellaneous Income  and then click  Other Reportable Income .

Use the description  "14 day rent rule" .That takes care of reporting the income.

Then same steps ,same description, enter the same amount as a negative.

Thank You!!! Much Appreciated...

Your welcome.

Your suggestion directly contradicts TurboTax's instructions for Other Reportable Income ("Do not enter income reported on Form 1099-MISC"), and it doesn't match the IRS' own instructions:  "There's a special rule if you use a dwelling unit as a residence and rent it for fewer than 15 days. In this case, don't report any of the rental income and don't deduct any expenses as rental expenses." Maybe it's the best way, but TurboTax needs to handle this situation itself, properly!

@skierpage .. If you get a 1099 and do not report you get a letter from the IRS , your choice .on how to report.

Turbo tax really missed the boat on handling this. If you don't report the 1099 then IRS flags your return for unreported income. So -you need to report it and the zero it out. Turbo instructions please and update your software!

How do I "zero out" the 1099 misc rental income that is less than 15 days?

Thanks

@johndeerehunter  As @view2 says above you will go to the 'Wages and Income' section and scroll down to 'Other Income' and enter the income from the 1099-MISC.  It asks for a description of the income and in that space you will put "14 day rent rule".  Then, on the next line, put the same description and a negative of the same amount as you put on the first line.  That will zero out the amount so that it is reported to the IRS but not taxed.

 

Great!

Thanks for getting back on this. 

I'm using TTX Home and Business and I don't seem to have those options.  Can you please further explain.  Specifically I'm confused as to where the 1099-MISC goes.  Do I not put the income at all under the 1099-MISC section ONLY under the LESS COMMON INCOME: MISCELLANEOUS INCOME: Then type in the 1099-MISC as best possible?

Follow these steps:

1. Log into your return
2. Go to Federal
3. Click on Income
4. Scroll to the bottom section,  Less Common Income
5. Select Miscellaneous income, 1099-A, 1099-C, start
6. Select Other income not already reported on a W2 or 1099, start/edit
7. Other wages? Yes, continue
8. continue, continue
9. Other Earned Income, yes, continue
10. Source? other, continue
11. Description - 1099 MISC, amount
12. done

 

 

 

continue, continue

 

When I went to file in the Less Common section it says DO NOT enter information from 1099 MISC. What do I do?

What form are you trying to enter and what Is the reason you got the form (what kind of income was it for)?   This thread is old and I'm not sure which post you are replying to so I need a little more info.   You can enter the form in different places depending on why you got it.  @megpatpren08 

Hello,

Thanks for your response. 

I have a 1099-MISC form that I received for a TV production being filmed on the property of my primary residence. They used my land but not my actual house and we were living in our house throughout the duration of filming. The length of filming was 11 days. I think there is a "14 day rule" but, I am not sure how to file this information.  The box that is filled on the 1099-MISC is "rents".  Thanks!

You are referring to "the Masters exemption".    It is named that because so many people take advantage of it every year during the big annual golf tournament in Georgia.

 

It doesn't matter whether you earn $100 or $10,000 during those 14 days that you rent out space—you don't have to report the earnings on your taxes. However, to qualify, you must:

 

• Rent part of or your entire house for no more than 14 days during the year
• Live in the house yourself for more than 14 days during the year or at least 10% of the time that you rent it to others.

 

Less than 15 days of Rental Activity?   If you don't qualify for the exemption, use that link to report your rental income.   

 

There's a special rule if you use a dwelling unit as a residence and rent it for fewer than 15 days.   In this case, don't report any of the rental income and don't deduct any expenses as rental expenses.    See IRS topic 415. 

Thanks. This does apply to me: There's a special rule if you use a dwelling unit as a residence and rent it for fewer than 15 days.   In this case, don't report any of the rental income and don't deduct any expenses as rental expenses.

 

But, what do should I do about my 1099 MISC form? where can I account for that? 

 

Thanks!

You can leave the 1099-MISC off your return and claim Section 280A(g) if the IRS inquires, 

OR

 

You may enter the 1099-MISC under

Personal Income

Other Common Income

Income from Form 1099-MISC

 

If they listed the income in Box 1 as rent, you will need to select "Nonbusiness income from the rental of personal property or equipment" on the "Source of 1099-MISC Income" screen. 

 

Next, make a correcting entry to remove the income from your Adjusted Gross Income (AGI) 

Personal Income

Less Common Income

Miscellaneous Income, 1099-A, 1099-C

Other reportable income (last option on list) 

Type something like "Section 280A(g) for 1099-MISC" into the Description Box so the IRS understands what you are doing

Type the amount of the 1099-MISC income AS A NEGATIVE NUMBER (put - in front of the amount) 

 

The amount of the 1099-MISC will be on Schedule 1 line L 1. 

The negative amount will be on Schedule 1 line 12. 

Schedule 1 carries forward to the 1040 line 8