I have rental income from subleasing property that I lease ( and therefore do not own). Do I claim this money in the Rental Income or Misc Income section?

[JohnB5677 · Accepted solution]

You should claim your rent as "Other income."   According the IRS, "If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year."

NOTE:  . If your rental income is more than your rental expenses for at least 3 years out of a period of 5 consecutive years, you are presumed to be renting your property to make a profit.

You can enter your rent and also the repairs as Miscellaneous Income.  Please follow these steps:

1. Click on Federal > Wages & Income [In TT Self-Employed:  Personal > Personal Income > I'll choose what I work on].
2. Under Less Common Income, click on the box next to Miscellaneous Income, 1099-A, 1099-C
3. On the next screen click on the box next to Other reportable income.  
4. Answer Yes to Any Other Taxable Income?
5. Follow the instructions on the screens.
6. Once you have entered the rental income, you will be brought to the Other Miscellaneous Income Summary.
7. Click Add Another Income Item.  
8. On the Other Taxable Income screen, enter the repairs as a negative number.  Remember, your repairs cannot exceed he amount of rent you collected.

For more information, please see IRS Publication 527 -  Residential Rental Property

Please see:  Original Post