Reporting 1099MISC land rental income for land owned by someone else.

[stjohnst_19]

My daughter owns farm land that she allowed me to receive the rental income from to supplement my income (rented for cash). The renter paid directly to me throughout the year. I received a 1099MISC and I'm not sure how to report the income since I don't own the land. Can I report this on rental properties schedule E? Or should the 1099MISC have gone to my daughter with her taking the income penalty even though she did not receive the income? Confused on how to report this. Appreciate the advice.

[Kat · Accepted solution]

I believe the 1099 should have been issued to the owner of the land, your daughter.  Payment should also have gone directly to your daughter.  If she then wished to gift the income to you, that would have been the proper way to do it.

I'd ask the issuer of the 1099 to provide you with a corrected 1099, citing that you are not the owner of the land.  Your daughter will need to provide a W-9 to the issuer.  Hopefully, the issuer will be willing to correct this for tax purposes.

Your daughter will need to show the rental income herself on Schedule E, and pay any associated taxes.  

[stjohnst_19]

That is what I figured, I had a corrected 1099MISC issued with no trouble and changed the way we handle this going forward. Thank you.

[Kat]

Oh, great!  It was my pleasure.