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My 1099-misc is from a solar company that paid to be able to research whether our land is suitable for a solar project. Is this rent? How do I enter it?

 
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2 Replies
KatrinaB48
Expert Alumni

My 1099-misc is from a solar company that paid to be able to research whether our land is suitable for a solar project. Is this rent? How do I enter it?

This income should be reported as other income rather than rental income. Please follow the directions below to properly report this income on line 21 of your tax return rather than on a separate business form.

  1. Log in and open your return.
  2. Click the Federal tab on the left side of the screen.
  3. Click Wages & Income (if you do not land on the page).
  4. Scroll down and click show more beside Other common Income.
  5. Click Start/Revisit beside Form 1099-Misc.
  6. Describe the reason why you received your Form 1099-Misc.
  7. Indicate if any of the uncommon situations apply.
  8. Indicate that the income is not from activities like your main job.
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Carl
Level 15

My 1099-misc is from a solar company that paid to be able to research whether our land is suitable for a solar project. Is this rent? How do I enter it?

@KatrinaB48 's guidance only applies if the income is reported in box 3 of the 1099-MISC. I see no reason why it would be reported in any other box. But this needs to be clarified, "just in case".

Take special note that box 7 of the 1099-MISC is no longer valid for a 2019 form 1099-MISC. So if you have income entered in box 7, it's wrong. Just treat it and enter it "as if" it were entered in box 3, and you'll be fine.

 

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