I rented my trailer out on a couple of online platforms but they are not providing a 1099 until next year, how do I report properly?

[benlynch00]

This is a my own trailer that I do not have an LLC for. Just filing under my name. I made about $3000 and have several expenses that can be listed.

[ThomasM125]

You need to go to the Income and Expenses section, and then Less Common Income, then Miscellaneous Income, 1099-A, 1099-C. You will see an option for Income from renting out personal property that you can use to report your rental income.

@benlynch00

[edited 2/24/22 at 9:24 AM PST]

[benlynch00]

That section is making is asking specifics about rental real estate. With this being a travel trailer, its more a piece of equipment or vehicle. Are you sure this is the right section?

[AnnetteB6]

Rental of personal property (not real estate) when you are not in the business of renting property is reported on Schedule 1 Line 8 with the associated expenses reported on Schedule 1 Line 24b.  

This information is entered into TurboTax through the Less Common Income section of your return. 

Go to Less Common Income > Miscellaneous Income, 1099-A, 1099-C, and click Start or Update. 

Then scroll to Income from renting out personal property (not rental real estate or farm rentals) and click Start or Update to enter your information.  

Be aware that you will only be allowed to claim expenses up to the amount of income you have received.  This type of rental cannot generate a loss on your tax return.

But, if you are in the business of renting personal property, then your business income and expenses will be reported on Schedule C.

Where you report your income and expenses all depends on your profit motive and whether you intend to continue to rent your trailer with an intent to make money.  

@benlynch00

[edited 2/24/2022 | 11:12 am PST]

[benlynch00]

So can I include the loan payments or portion of purchase of the trailer since I bought it new in 2021? 

[DianeW777]

It depends.  There are two possible ways to report rental of personal property.

1. If you decide this is a business activity (self employment) for you, then you can deduct the expenses necessary to operate the activity of renting your trailer.  This would include depreciation of the trailer over a 7year recovery period (deduct a port of the cost each year) or an election to expense it all in the first year. You can also deduct interest on the loan and any other expenses necessary to maintain the trailer available for rent.
2. If you decide this is not a business activity and it is something that is done on rare occasions then you should report it as 'Less Common Income'.  No deductions will be allowed in this scenario.

Personal Property Rentals (IRS Topic 414)

• Report income and expenses related to personal property rentals on Schedule C, as self employment, if you're in the business of renting personal property.
• Report income on line 8k and expenses on line 24b of Schedule 1, if you're not in the business of renting personal property. 

[Edited: 02/24/2022 | 9:26a PST]

[ABSmith]

I received a 1099-MISC for my trailer rental and now TurboTax will not let me record the nonbusiness expense on Schedule 1, line 24b as TT puts the trailer rental revenue from the 1099-MISC on line 8z instead of 8L.  Is there any way to direct the revenue from the 1099-MISC to post to line 8L or can I just post manually to 8L and not enter in the 1099-MISC?

[PatriciaV]

You may need to review your Form 1099-MISC entries. On the page "Source of 1099-MISC Income," there is a box for nonbusiness income from the rental of personal property. This option should report the income on Schedule 1 Line 8(l). You can offset this with expenses on the same line or on Line 8(z) - simply enter another 1099-MISC with a negative number in Box 1.

[ABSmith]

Unfortunately in the step-by-step on the 1099-MISC, I have to put the income in 3-Other as that is what my 1099 says. I do not see the box for nonbusiness income from the rental of personal property, except in the later section of Less Common Income. But, there it says not to enter income on a 1089-Misc., so it ends up not letting me put in the expenses. Also, if I enter another 1099-MISC with a negative number in Box 1, TT won’t include the negative amount in the calculation. 

Should I not enter the 1089-misc and put both the income and expense in the  Miscellaneous Income section?

[KrisD15]

I see your situation as this:

You have a 1099-MISC for rent of personal  property reported in Box 3.

Enter the 1099-MISC 

Wages & Income

Other Common Income

Income from Form 1099-MISC

No, not like job or work, no, not for intent to earn money, only for 2023

Go back to 

Wages & Income

Less Common Income

Miscellaneous Income, 1099-A, 1099-C     START or UPDATE

Other reportable income     START or UPDATE

Yes, Description "1099-MISC PP rent"  NEGATIVE AMOUNT

DONE

Go back to

Wages & Income

Less Common Income

Miscellaneous Income, 1099-A, 1099-C     START or UPDATE

Income from renting out personal property (not rental real estate or farm rentals)   START or UPDATE

Enter the income amount the same as on the 1099-MISC and your expenses

DONE

1099-MISC  and negative adjustment is on Schedule 1 line 8z (zero's out)

Rent income amount from trailer on Schedule 1 line 8l

Expenses for trailer rental on Schedule 1 line 24b

done