1099 MSIC Rents

[tgkbarnes]

I have a 1099 MISC from an employer and a figure under Rents.  I have no idea what this is for but when I enter it, it is presenting as if I have rental property and I don't. Is there another section this should be under?

[ee-ea]

Ask the issuer.   They could have made a mistake.

[Critter-3]

Sometimes if you use your own vehicle or  equipment/tools on the job the employer gives you extra money for the "rental" of your property.  This happens a lot in some installation businesses like cable companies. 

If so this is a rent of personal property and you should follow the 1099-MISC entry section to enter this properly on the Sch 1 line 8L.   https://www.irs.gov/pub/irs-pdf/f1040s1.pdf

[Hal_Al]

If you use your car or other personal items (e.g. tools) in your work, you employer might report the reimbursement on a 1099-Misc (although that is not the proper way to do it).

In TurboTax, report it as personal property rental. 

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

Scroll down to:

-Less Common Income

      -Misc Income, 1099-A, 1099-C

       - On the next screen, choose – Income from Renting out personal property

[Critter-3]

The employer does it this way to avoid paying FICA taxes on extra wages and they get away with it because there is this glitch in the tax law.  Sad thing is unless the taxpayer chooses to put this on a Sch C there is no way to deduct the costs of the vehicle or the equipment/tools.   corrected info by @Hal_Al  below

[Hal_Al]

@Critter-3  said "unless the taxpayer chooses to put this on a Sch C there is no way to deduct the costs of the vehicle or the equipment/tools"

I'm not sure that's true.  The income goes on line 8l of Schedule 1 and the expenses on line 24b.  TurboTax provides an entry box for the expenses, in the personal property rental interview.

But, if this is just normal employee car use (as opposed to actual personal property rental), it would not be proper for the employee to claim a deduction (employee business expenses are no longer deductible) and he should leave the expenses box blank. 

[Critter-3]

@Hal_Al 

Oh good grief ... that Sch 1 is growing as we speak ... you are as usual correct.  I was thinking old rules.  FYI ... the way they have expanded the 3 schedules to 2 pages  they should have just  left them as the original 6 pages.