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Level 2
January 22, 2023
Question

1099-NEC for Vacation Rental Reported on Schedule E

  • January 22, 2023
  • 2 replies
  • 17 views

I rent my home for four months out of the year; traveling during that rental period.  Otherwise I live in the home.  I have a rental management company that manages the property during the rental period, but is largely uninvolved when I live there.  During the time that I live in my home, I personally make repairs, pay for contractors to do monthly maintenance, pay contractors for repairs, etc.  I have one contractor who is a sole proprieter and it appears that I need to issue him a 1099-NEC.  I can see in the TT Interview where it asks if you pay anone more than $600 and whether or not you reported that payment on a 1099-NEC.  However, I do not see anywhere in TT where I can file a 1099-NEC.  I tried filling out the 1099-NEC Worksheet, but that appears to link to a schedule C, not a Schedule E.   Spent a couple of hours trying to research the forums.   No luck.  Any help or guidance appreciated.

2 replies

Level 15
January 23, 2023

@finethreads wrote:

During the time that I live in my home, I personally make repairs, pay for contractors to do monthly maintenance, pay contractors for repairs, etc.....


Form 1099-NEC is for trade or business reporting only.

 

See https://www.irs.gov/instructions/i1099mec#en_US_2022_publink100019786

Level 2
January 27, 2023

I qualify for the Qualified Business Income (QBI) deduction, which begs the question:  Am I running a business?”.  That is what concerned me.  

 

I eventually found an IRS safe harbor notification that allows for QBI on rental enterprises.

 

https://www.pdr-cpa.com/qbi-safe-harbor-rule-real-estate/