Where do I report 1099-Misc for rent paid by insurance company for second home (Home is not rental property) to person displaced by tornado?

[maryefuller]

We offered our second home to a person whose home was damaged by a tornado.  His insurance sent us a check for fair rent for 4 weeks.

[AmandaR1 · Accepted solution]

Since the insurance company paid you the Fair Market Value and the time period was longer than 14 days, to accurately report your form 1099-misc box 1 income, you would need to report it as rental income. 

I realize you may not have intended to create this rental status by offering your second home, but this is the correct way to report it.  It is awesome that you provided that support. 

When you add your form, the software will prompt you to enter it as rental income. Under Income >>> Rentals and Royalties >>> You'll need to add your second home to the software as a rental to accurately report the insurance payment. However, you'll also be able to deduct all of your expenses for maintaining the home. 

The software can allocate them to the time the property was a rental or you can choose to only enter expenses for that portion of time. If you have questions remaining or your 1099-misc reported the income in a different box, please add details in the comments below.