How do I report a 1099-MISC that included rent and damage reimbursement paid in early 2017 for a rental property we sold in 2016?

[sdrinitaly]

We sold the house in 2016, but were not reimbursed for the damages ($1449) and back rent ($700) until court settlement concluded in 2017.  We concluded all our taxes on the 2016 sale with our 2017 tax filing so we no longer own the property and can't file a Sched-E. How do I report the 1099-MISC showing "$2149 - Rents" and reflect the $1449 of damage reimbursement??

[DS30 · Accepted solution]

Since you no longer have the rental property this 1099-MISC related to, then you can report it as "other reportable income" on line 21 of your 1040.

To enter other reportable income in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "other reportable income" in the search bar then select "jump to other reportable income". TurboTax will guide you in entering this information.

Say "no" to other wage income, then scroll down to other reportable income and click to start.

Enter "yes" to other reportable income and enter the information on the next screen (even though it says not to enter any 1099-MISC)

For the description put "Form 1099-MISC income related to court settlement for back rent and damages from prior year's sold rental property".

[sdrinitaly]

Thank you....makes sense!

[sdrinitaly]

The 1099-MISC showed a gross "RENTS" of $2149.44, but only $700 of that was rent.  The remainder was reimbursement for damages. Do I only put the $700 in as "other reportable income"???  Since the other $1449 is reimbursement for damages, shouldn't I be exempt from reporting that as income?