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Level 2
posted Feb 24, 2025 8:08:25 PM

1099-MISC for Rental Property has utility payment in Box 3

Hi All,

 

I have a rental property and received a 1099-misc from the management company. I paid utilities on behalf of the tenant and the tenant paid me back the same amount via the management company. The 1099-misc included the utilities payment on box 3, which I couldn’t report under rental income. How do I report this 1099-misc?

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1 Replies
Expert Alumni
Feb 25, 2025 5:40:14 AM

Try entering your Form 1099-MISC as you received it except for box 3.  Then enter the box 3 amount as income for your rental property that was not included on another form (even though it was).  This will report everything you received as income specific to your rental property.  

 

Then, you will deduct the utility payments that you made on behalf of the tenant as a rental expense so that the extra income is deducted.