Property manager reported rented parking space as "Other Income"

[tahoetax]

I own a rental and my property manager reported rented parking spaces as "Other income" on 1099-MISC, separate from "Rents". Turbo Tax does not include this in the rental income when entered even though the income is generated as effectively rent associated with the rented units in the building. After entering it, TT includes it as 1099-MISC entered but not yet reported on a form or schedule.

How should this be handled? This income is clearly associated with the rental property.

[AmyC]

Contact the issuer and ask for a corrected form reporting it all as rental income. If they refuse, then you will have to use the larger number to replace the one issued for rental income. If the IRS ever asks, you can just show that it is all accounted for on your tax form, which the whole point.

[tahoetax]

Got it. I'll ask them. And to be clear, if they refuse I should just add the box 1 -Rents and box 3 - Other income totals together and report that as the new box 1 total with a $0 for box 3?

[JulieS]

Yes, you should report the entire amount as rental income, regardless of whether the property manager changes the 1099-MISC form. 

[AmeliesUncle]

Throw the 1099-MISC in the garbage.  Seriously, it means nothing.

Just report the income properly.  There is no need to enter a 1099-MISC (unless it shows tax was withheld).

[Hal_Al]

I agree with the other 3 answers, for your situation.  Just report the income as rental income and don't worry about the 1099-Misc (#4 below).

That said, here's generic answer for  an erroneous 1099-Misc situation.

If you received an erroneous 1099-Misc, you have several choices:

1. Ideally, you get a corrected 1099-misc from the payer
2. Don't report it on your return. Attach a copy of the 1099 and a statement explaining the circumstances. You can't e-file. From the IRS instructions for form 1099-Misc: Form 1099-MISC incorrect? If this form is incorrect or has been issued in error, contact the payer. If you cannot get this form corrected, attach an explanation to your tax return and report your income correctly.
3. Report the income on Schedule E as rental income. Then Report it again as other income on line 8z, Schedule 1 income (enter in TurboTax at the 1099-Misc screen). Then zero it out by entering a line 8z deduction, for the same amount.  In TurboTax (TT), enter at:
   - Federal Taxes tab
    - Wages & Income
   Scroll down to:
   -Less Common Income
         -Misc Income, 1099-A, 1099-C
          - On the next screen, choose – Other reportable income -  Answer yes to Any other Taxable Income -On the next screen, Enter the number with a minus sign (-) in front.  Briefly explain at description. Call it something like "rental income reported on schedule E"
4. Just report the income correctly (Schedule E)  and hope you can explain it away when & if the IRS contacts you

[spidergirl723]

What about if I don't own the condo and I'm only subletting the outdoor, unattached parking spot? Where do I put that using TurboTax Home and Business?