topic Where do I enter a 1099 int that is associated with a rental property? in Investors & landlords

Where do I enter a 1099 int that is associated with a rental property?

Tommyranger — Thu, 06 Jun 2019 05:32:54 GMT

Where do I enter a 1099 int that is associated with a rental property? Do I enter it some where in the rental property section or in some other part of the wages/income section?

Since your rental income and your interest income are rep...

HelenaC — Thu, 06 Jun 2019 05:32:55 GMT

Since your rental income and your interest income are reported on your personal income tax return, enter IRS form 1099-Int under Federal Taxes, Wages and Income. There is no interest income reporting, on Schedule E Supplemental Income and Loss (From rental real estate), just rental income.

To enter your 1099-INT:

https://ttlc.intuit.com/replies/3300478

Re: Since your rental income and your interest income are rep...

svak1 — Fri, 07 Apr 2023 14:11:23 GMT

If you don't report it on Schedule E, then you don't receive the Qualified Business Income Deduction on that amount. That amount can be significant. Any other ideas about how to enter it for Rental Property?

Re: Since your rental income and your interest income are rep...

MonikaK1 — Mon, 10 Apr 2023 16:00:15 GMT

If your rental property qualifies as a trade or business, then you can include the interest income on your rental schedule.

QBI does not include items such as:

Items that are not properly includable in taxable income. Investment items such as capital gains or losses.
Interest income not properly allocable to a trade or business.

Solely for the purposes of section 199A, a safe harbor is available to individuals and owners of passthrough entities who seek to claim the deduction under section 199A with respect to a rental real estate enterprise. Under the safe harbor a rental real estate enterprise will be treated as a trade or business for purposes of the QBI deduction if certain criteria are met. For more information on the safe harbor, see News Release IR-2019-158

An interest in rental real estate that does not meet the requirements of the safe harbor may still be treated as a trade or business for purposes of the QBI deduction if it otherwise is a section 162 trade or business.

See this IRS webpage for more information on the QBI deduction.

@svak1

Re: Since your rental income and your interest income are rep...

whodiini — Wed, 23 Aug 2023 17:48:19 GMT

The OP asked where to enter rental interest income and I would like to know as well.

On Schedule E, do I put it on line 3 and aggregate it with the rent or do I put it elsewhere? Also, if I put it on line 3, then how do I report that a 1099-INT is reported there and NOT on my personal interest income section. Otherwise it would appear that I did not include interest income reported.

Re: Since your rental income and your interest income are rep...

Hal_Al — Fri, 25 Aug 2023 12:50:19 GMT

You may have to make a double entry. Enter at the 1099-INT screen, under interest and dividends. You will get a follow up screen "Tell us if any of these uncommon situations apply". Choose "I need to adjust the taxable amount". Show the entire amount as the adjustment (positive number) and choose other reasons. The 1099-INT income and adjustment will show on Schedule B (net $0 on Sch B).

Later, in the rental income section, enter the amount as rental income, to get it on Schedule E.

Re: Since your rental income and your interest income are rep...

whodiini — Fri, 25 Aug 2023 17:29:49 GMT

Thank you! Excellent answer!