turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I rented my house to my business for 10 days in 2024. Under the Augusta Rule, I need to disclose the earnings ($12,739) but not be taxed on it. How do I do that?

I have entered the 1099-MISC within the income area of the software. I then entered my property details in the rental area of the software, but it keeps telling me that I don't need to include income because it was only rented for 10 days. Where can I remove that income from the calculation?
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
AnnetteB6
Employee Tax Expert

I rented my house to my business for 10 days in 2024. Under the Augusta Rule, I need to disclose the earnings ($12,739) but not be taxed on it. How do I do that?

Since your property was rented less than 14 days, no entry is required to be reported on Schedule E Rental Income and Expenses.  However, if you enter the income reported on Form 1099-MISC in the normal place where this data would be entered, TurboTax is going to take you through the Schedule E section as well.  

 

Instead, use the steps below to report the income and report the same amount as a negative adjustment.  Ignore the messaging that says do not enter Form 1099-MISC in this manner to avoid going through Schedule E.

 

  • Go to the Income section of your return
  • Scroll to the Less Common Income category
  • Click Start or Update beside Miscellaneous Income, 1099-A, 1099-C
  • Scroll to the bottom of that section and click Start or Update beside Other reportable income
  • Answer Yes
  • Enter your description and amount for the income you received
  • Enter your description and a negative amount for the income you received

 

The end result is that no additional income is reported on your return, but there are two income entries shown on Schedule 1 line 8z.

 

@jm915998 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

3 Replies
KrisD15
Employee Tax Expert

I rented my house to my business for 10 days in 2024. Under the Augusta Rule, I need to disclose the earnings ($12,739) but not be taxed on it. How do I do that?

The software is doing the calculations and reporting correctly.

Since the rent listed on the 1099-MISC is not taxable, the 1099-MISC would not be entered. 

 

Am I understanding your question correctly? 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

I rented my house to my business for 10 days in 2024. Under the Augusta Rule, I need to disclose the earnings ($12,739) but not be taxed on it. How do I do that?

I need to report the earnings through a 1099-MISC, but I need to remove the earnings from the calculation due to the Augusta Rule. 

AnnetteB6
Employee Tax Expert

I rented my house to my business for 10 days in 2024. Under the Augusta Rule, I need to disclose the earnings ($12,739) but not be taxed on it. How do I do that?

Since your property was rented less than 14 days, no entry is required to be reported on Schedule E Rental Income and Expenses.  However, if you enter the income reported on Form 1099-MISC in the normal place where this data would be entered, TurboTax is going to take you through the Schedule E section as well.  

 

Instead, use the steps below to report the income and report the same amount as a negative adjustment.  Ignore the messaging that says do not enter Form 1099-MISC in this manner to avoid going through Schedule E.

 

  • Go to the Income section of your return
  • Scroll to the Less Common Income category
  • Click Start or Update beside Miscellaneous Income, 1099-A, 1099-C
  • Scroll to the bottom of that section and click Start or Update beside Other reportable income
  • Answer Yes
  • Enter your description and amount for the income you received
  • Enter your description and a negative amount for the income you received

 

The end result is that no additional income is reported on your return, but there are two income entries shown on Schedule 1 line 8z.

 

@jm915998 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question