How to associate 1099-MISC with rental properties when multiple properties share the same 1099-MISC form?

[2yuanwh]

How to calculate the house depreciation for rental properties?

[DDollar · Accepted solution]

If you have one 1099-MISC for multiple rental units and want to apply a portion of the rent to each property, instead of entering a single 1099-MISC break it down and enter multiple Forms 1099-MISC as if you had received a separate Form 1099- MISC for each property.  Make sure the total of your Forms 1099-MISC entered in the program equals the amount on the one that you did receive.

[c5yawdh]

Your program is poorly written.  In addition to me having to do your job, I got to this point before, and it wanted me to create new account etc. etc. etc.  Then it dropped me, and I had to re-enter information.  A simple solution is to check each property and put in an amount for each property that was check.  The total would have to match the total of the 1099.  Your program will cause problems with the IRS..   Poor Poor Poor.  This is a computer program.

[view2]

@c5yawdh ... LOL that is exactly what is stated in the answer.

[c5yawdh]

No.  That is not what is in the answer.  It said to create a 1099 screen for each property and to make sure they all totaled the original 1099. So I would have 17 1099s .  It should be one screen, with the amounts next to each property that you check off.  Obviously, you have not used the program where it brings over rentals from the previous year!  Learn your program before you make fun of your customer!  If you knew anything you would know that the irs matches 1099s.  I got one not 17!

[view2]

Using  the Turbotax program for 12 years + plus with 16 residential rental  properties down from  52 which was also reported on a Turbotax return ,
On the Schedule E screen you input the 1099 rental income and the answer will work.
Happy taxes.

[tverkamp]

The answer couldn't me be much clearer than it's written.  Maybe it should have had an extra comma as in "instead of entering a single 1099-MISC, break it down" but it's still clear without it.

[tbtissue]

If you break down income for each property to match amount of 1099-misc, without entering 1099-misc, you will raise red flag to IRS. If you enter 1099-misc, you will double your income for properties. I think there is a glitch in TurboTax software.

[ajs]

I agree, TurboTax is lame on this one. It's bad practice to force users to fake anything when entering tax statements like 1099-MISC, especially if it's a lot of clerical overhead. We are facing this now (Jan 2020) for the first time (now 2 properties under 1 manager => 1 statement). Humans might be smart enough to recognize when we split the 1 statement into 2, but IRS robots probably are not.

[JV11]

Have you had any luck with finding a solution to this? I am having the exact same problem.

[Hal_Al]

@JV11 - The original answer is the correct way to do it. 

If you have one 1099-MISC for multiple rental units and want to apply a portion of the rent to each property, instead of entering a single 1099-MISC break it down and enter multiple Forms 1099-MISC as if you had received a separate Form 1099- MISC for each property.  If you make sure the total of your Forms 1099-MISC entered in the program equals the amount on the one that you did receive, it will match the IRS computers and there will be no problem. 

[ajs]

Hal_Al, let's hope you are right. A few years ago Intuit promised us that their broken math on the Form 8962 (rounded before adding, but should add first, and apparently now fixed) wouldn't matter to the IRS... And then we got AUDITED for ACA compliance, and it took a year of perseverance to get that resolved.

[65-GTO]

I have 5 rental properties and 1 1099MISC. Has anyone tried the recommended solution: namely break it into 5 pieces and submit them separately. Did this create any problems with the IRS. Any audits? Thanks

[ColeenD3]

That is the only thing you can do. As long as all the income between the five agrees with the amount on your 1099, you are good.

@65-GTO

[65-GTO]

I tried it and I don't know if I did something wrong but it completely destroyed all my rental property historical data. I am starting my tax over again with a completely new copy of 2019 taxes. I can't understand why Ttax will not fix this problem. Having been a software developer and manager of software development projects this is a simple fix.