vacation rental income and 1099 reporting

[vwang]

My vacation rental is managed by a property management company for the first time in 2019.  They sent me a 1099 MISC with the rental income in box 7 (non-employee compensation).  Where is this entered?  If I include it in the INCOME part of my filing, it expects me to pay significant income tax (without taking into account the house's expenses).  When I try to include it under the Rentals/Royalties section, TurboTax says I cannot enter Non-Employee compensation in this section.  Any guidance on this?  Did the Property Management company issue this 1099 correctly?

[tagteam]

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@vwang wrote: 
Did the Property Management company issue this 1099 correctly?

No, they did not. The management company should have issued the 1099-MISC with the figure in Box 1 (Rents).

Your only recourse at this point is to contact the company and request that they issue a corrected 1099-MISC. Otherwise, you should simply enter the figure as rental income in the Rentals section of the program (Schedule E).

[vwang]

Thank you so much for your reply.  I was thinking the same thing (report is box 1) as when I do that Turbo Tax prompts me to assign it to the property's Schedule E form.  

I will contact the property management company.  thank you.

[Carl]

Just a side note here.

They sent me a 1099 MISC with the rental income in box 7

Box 7 on a 2019 form 1099-MISC is not valid for *ANYTHING*. That box is greyed out completely on the most recent version of the 2019 form. But I do note that the instructions for the 2019 form have not as of yet been updated to reflect this. Odder still is that the sample form in the instructions show that box 7 is greyed out. Even so, rental income is reported in box 1. Period.

[tagteam · Accepted solution]

Box 7 is NOT completely "greyed out" for 2019 (see screenshot) and IS still valid for 2019 nonemployee compensation.

Box 7 has changed completely for the 2020 tax year, however.