I had a 1099-MISC with income reported for my rental, but also "Other Income" which was lease end maintenance. I have no idea where this should go?

[xhawkini]

Let's say I had $10,000 reported in Box 1 for the actual rental payments. But this year since I had the lease end on my property, and they were charged over $600 for carpet cleaning etc, I had Box 3 reported around $700. In my Schedule E I claimed the expenses, but the only income it includes is Box 1.

Where should the Box 3 income be reported?

[PatriciaV · Accepted solution]

As you have discovered, the 1099-MISC entry for Rental Property will not accept income from Box 3 (Other Income). You have two choices:

1) Report this as income "not reported on 1099-MISC" in the Rental Income section.

2) Reduce your expenses by this amount since it was a reimbursement for the cost of necessary cleaning/maintenance expenses.

Either choice is acceptable.