My property management company (Using Buildium) reported late fees on my 1099-MISC as "Other Income", but shouldn't it be all rental income? When entering this form into the rental property section of TurboTax Home & Business for Windows, it says that "Other Income" cannot be allocated towards a rental property, and wants to put it on Schedule-C. If it's on Schedule-C, it's not treated as passive income (correct?), and cannot be offset by Rental Expense, correct?
Should Late Fees be reported as "Other Income" or as "Rents"?
You are correct. All income received from any source for any reason pertaining to rental property, is rental income. Period. Just enter the total as a box 1 amount and press on. Besides, when you e-file not only is the 1099-MISC not sent to the IRS, but the fact that you even received/entered a 1099_MISC is not sent with the e-filed return either.
Meanwhile, educate your PM.