I received a 1099 MISC for a movie being filmed at my house for a few days. It is in box 1, rental. I was told that under 15 days a year it is not taxable. Do I enter it?

[rvcerbone]

I received a 1099 MISC for a movie being filmed at my house for a few days. It is in box 1, rental. I was told that under 15 days a year it is not taxable. where do I enter it? When I use rental, it taxes me and fills out schedule E. When I fill out schedule E, and I put number of days rental, it says don't use schedule E but doesn't tell me what to choose. 

[PaulaM · Accepted solution]

If you rent for less than 15 days, the income is not taxable. But you still need to enter the form because the IRS also has a copy.

Enter the amount in the Less Common Income section, Miscellaneous Income  and then click Other Reportable Income. Type '14 day rent rule' as a description and enter the amount.

Then repeat the steps above and enter the amount as a negative number. You have now reported the 1099-MISC form with a zero dollar amount effectively.

Delete the Schedule E form from the Forms Mode if you have no other rentals.

[sb2020]

I am in this same position, but they sent me a 1099-Misc with the fee I was paid in box 7 instead of box 1. Can I still enter the fee in box 1 on Turbo Tax? I didn't provide any service besides letting them in the house.

[Hal_Al]

You can do that for simplicity, but it would be better to leave it in box 7 (that's what the IRS will be looking for). After you complete the TurboTax (TT) interview identifying this as misc income, TT will out it on line 8, of sch 1 as Non employee compensation on 1099-Misc. 

Follow the instruction above for making a negative entry of the same amount. 

[PJB3]

I'm a little confused on the entry.  Looks like I may have several things going on. 

I rented my house out for 6 days to a corporation for a sporting event.  The 14 day rent rule applies.

I received a 1099 Misc.  They put the compensation in block 7 (non-employee compensation) versus block 1 rents (we did have a formal rental agreement).

To recognize the 1099 Misc in turbo tax I entered the 1099 Misc. in the system.  If I include the $$$ in block 1 it kicks off the Schedule E which gets deleted after I answer the questions related to the days rented.  Then the amount shows up just as rent income.  If I enter the 1099 Misc wit the information in block 7 and name it 14 day rent rule it shows up as a 1099 Misc with a profit.

If I try to enter the information in Less Common Income section, Miscellaneous Income  and then click Other Reportable Income, it doesn't link to the 1099 Misc.

Any guidance related to this entry would be greatly appreciated.

[Hal_Al]

You also have to make the negative entry to offset the income.

[PJB3]

If you could help clarify it would be greatly appreciated.  

Do I:

1) Enter the 1099 Misc in the normal section labeling it as "14 day rent rule"?

2) Enter a negative amount under the "Less Common Income section, Miscellaneous Income  Other Reportable Income - Type '14 day rent rule'  and enter a negative number?

[Hal_Al]

Yep, you got it. 

The output, on line 8 of schedule 3 will look like this (using a $1000 example):

      Non employee compensation on 1099-Misc.  $1000

      14 day rent rule   -$1000

[garysanangel]

Thanks for this info. I am wondering how to make this work in TB Home and Business.

 I am not seeing:

"Less Common Income section, Miscellaneous Income  Other Reportable Income" in order to type in "14 day rent rule".

The only way I can do this if I override Line 8 from Schedule 1 but them I get form errors on review is that okay?

Currently, the only way to make it work so that I zero out my rental income from a one-day film shoot is by clicking on the rents box to bring up supporting details.

Under supporting details Box 1 rents I have:

Description                      Amount

Rents on 1099-Misc.      2,100

14 day rent rule             -2,100

My 1099-Misc Rents becomes "0" in Box 1 will this be sufficient or raise a red flag?

Thanks in advance,

Gary

[Hal_Al]

@garysanangel  - Yes, that's red flag.

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

• “I’ll choose what I work on” Button

Scroll down to:

-Less Common Income

      -Misc Income, 1099-A, 1099-C

       - On the next screen, choose – Other reportable income 

       - On the next screen, click yes

       - On the next screen, you'll get blanks to enter the amount and a description. 

[garysanangel]

Thanks so much, @Hal_Al I can't believe I missed that! That detailed walkthrough really helped!

Quick clarification:

Should I still create a 1099-M in the normal way indicating the payer's name and box 1 Rents for 2,100.

Based on the initial post, schedule E is created and in my situation, I see two forms that I would need to delete.

Schedule E, p1 (Schedule E, Copy 1)

Schedule E Wks (My Home Address) (Not Done)

Or disregard the above and just place all the information under 

Misc Income, 1099-A, 1099-C / Other reportable income as

14 day rent rule  2,100

14 day rent rule -2,100

Thanks in advance!

[Hal_Al]

Either way is OK.

1. Original answer:  "Enter the amount in the Less Common Income section, Miscellaneous Income  and then click Other Reportable Income. Type '14 day rent rule' as a description and enter the amount."  I would type "Box 1 of 1099-Misc" , instead.  The deduction will use the 14 day rule description.

OR

2. Enter at the 1099-Misc screen. When asked why you got this, select "non business income from the rental of personal property or equipment".  That will get TT to identify it as box 1 1099-misc income on line 8 of Schedule 1.

[garysanangel]

@Hal_Al  Got it!

I have selected "non business income from the rental of personal property or equipment" but I have left the income blank in Box 1 Rents of1099-M Form step-by-step section.

Since all income info is going here correct?

"Less Common Income section, Miscellaneous Income and then click Other Reportable Income."

Now Schedule 1 line 8 has

14 day rent rule         2,100

Box 1 of 1099-Misc  -2,000

which clarifies a bit more! Thanks 🙂

[Hal_Al]

No.  It's either/or.  Enter the income one place or the other; not both. 

"14 day rent rule" needs to be the negative amount on line 8 and  "Box 1 of 1099-Misc" the positive amount. 

[jesszep]

Im a bit confused where will you enter the negative income to offset the positive number? Thank you for your help In advance!!!!!!!!!!!!