Rental income error on turbo tax

[arrestedcloud]

Hi,

We rented out our home for 11 days in 2019. It was our home for 262 days of the year. The rental management company sent us a 1099-Misc for $2000 however, I think this is the security deposit which they are holding.

Any way, when I add this income to Personal Income section of turbo tax, it makes us go back to Business section and walks us through Schedule E and determines that this cannot be used because the property was rented for less than 15 days and removes it. When I come back to Personal Income sectio, it says there is $2000 in rental income that you have to declare and we are back on the hamster wheel.

How should I report this income?

Thanks!

[ColeenD3]

You will have to include it as "other income" and then back it out again, stating "fewer than 15 day rule".

Please follow the instructions below to report your cash (check)  income on line 21:

• Click Federal Taxes -> Wages & Income and scroll down to Less Common Income
• Go to the last selection, Miscellaneous Income and click Start
• Go to the last option, Other reportable income and click Start
• When it asks, "Any other reportable income?" say yes and then type in a description and the amount to report it on your tax return.
•  

Example:

[arrestedcloud]

Hi,

@ColeenD3 Do you mean here ? Also we did not receive this income, this is a security deposit held by the management company.

Even though we received a 1099-MISC for this?

Thanks!

[ColeenD3 · Accepted solution]

Yes. That is a precaution for those who might enter self-employment income there. However, do indicate that it was on a 1099-MIsc Box 1 so the IRS can match it.

[ggipso]

I have entered the rental income from the 1099-MISC.  Turbo Tax keeps returning to the amount on line 3b with the correct amount entered.  Under "Days rented at fair rented value" and "Days of personal use" continues to return.  This was a one time payment to lease land.  Please help.

Gail

[Critter-3]

DELETE the 1099 you already entered and start again by doing this :   

You can report it as other income on Sch 1  line 8. Here's how to enter it in TurboTax.

• Click the Federal Taxes tab ( Personal in the Home & Business version)
• Click Wages & Income. (Personal income in the H & B version)
• On the screen "Your 2020 Income Summary," scroll all the way down to the last section, "Less Common Income."
• Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
• On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."
• The next screen asks, "Did you receive any other taxable income." Click Yes.
• On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.
• On the next screen click Done.

The income will be reported on Sch 1 line 8 with the description that you entered.