Wind Farm Good neighbor agreement

[cmduffy15]

I received a 1099 misc for a wind turbine that is not on my land but is next to my land. The company gives money as a nuisance payment. On the 1099-misc there is amounts in box 1. but every time I enter sch E into box 1 Turbo Tax asks for alot of rental questions which this is not rental property. How do I get Turbo Tax software to recognize this as income without filling out the rental questions. 

[DianeW777]

The steps to entry for Other income is shown below Technically it is a rental payment since it is not royalties or self employment.  If you have no expenses to use against it you can enter using the steps below without entering your 1099-MISC, which you will need to delete.

Select the link below based on the TurboTax account you use to delete the 1099-MISC.

• If you're using TurboTax Online software and need to delete a form, click here.
• If you're using TurboTax Desktop software and need to delete a form, click here.

Other Miscellaneous Income:

1. Sign into your TurboTax Online/Mobile: Go to Tax Home (left panel) > Income and Expense or 
2. TurboTax Desktop account  Wages and Income  section 
3. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
4. Select Other reportable Income > Enter a description (----) and the amount

[cmduffy15]

Even though when I clicked on it, it States in bold DO NOT enter amounts from a 1099. We will be receiving this every year. I understand I can't report it as royalty as its not in box 2. There is a Lease on my property but its not rented, Just gives them access to come on property.

[PatriciaV]

If you prefer, you can enter this under the 1099-MISC topic. 

1. Start in Federal Taxes >> Wages & Income >> Other Common Income >> Income From Form 1099-MISC. Click "Start" and work through the interview.
2. After entering the info from the 1099-MISC, continue until you see the question about this being connected to your main job, and say "no."
3.  Check only the box for 2024 income, even though you may receive it again in the future. This isn't reported to the IRS.
4. Then answer that this was not an "intent to make a profit." 

Note that this process classifies the 1099-MISC as "Other Income", which will appear on Line 8 on Form 1040. (Same outcome as the steps previously given by DianeW777.)

[cmduffy15]

I got it to work in the 1099 misc section if I click "Nonbusiness income from the rental of personal property or equipment" it adds it to the summary section without any rental questions asked. Is that allowed?

[cmduffy15]

I don't get asked the questions you said from either 2. or 3.

[DianeW777]

Yes, that's allowed.  As long as you don't see this as self employment income (Schedule C), then your return is complete including this income. I understand your concern based on your comments however as long as the income is reported that's all that matters in the end.

It's important to print and review your return before you file.  You have access to all forms when you choose to print your return in TurboTax Online/Mobile.  However you are required to pay before printing, but do not have to file until you are ready.

• Can I print a copy of my return in TurboTax Online before filing?

If you are using TurboTax Desktop you can switch to Forms and review the details.

@cmduffy15