I have friends that started a business in April 2022. They needed a truck to haul equipment. They could not find one soon enough to keep up with the work load they were getting, so they asked if they could use mine and would pay me $40 for each day used. I said sure thing. Their intent was to save money on Enterprise truck rentals, etc. Now 7 months later they informed they will be doing a 1099 for rental use of my truck. Can they do that? I don't work for them in any compacity, and renting out my truck is not a business.
@DustinVA said " I don't work for them in any compacity, and renting out my truck is not a business."
You are renting out personal property. You do not need a 1099 to report the income. As others have said, they MAY give you a 1099. But that's mostly for their business, not for you reporting your income.
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 personl property
- On the next screen, enter you income and expenses. Note: you do not list your expenses, just enter a total, but not more than the income.
The income goes on line 8k of schedule 1 and the expenses on line 24b of Schedule 1.
They have to give you a 1099 to report to the IRS that they had that business expense and you have to report it as income.
Ok then. So when I file taxes for the year, is there a deduction for miles or anything like that?
You can take actual expenses only ... you did not drive the vehicle so the standard mileage rate is not allowed.
@DustinVA said " I don't work for them in any compacity, and renting out my truck is not a business."
You are renting out personal property. You do not need a 1099 to report the income. As others have said, they MAY give you a 1099. But that's mostly for their business, not for you reporting your income.
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 personl property
- On the next screen, enter you income and expenses. Note: you do not list your expenses, just enter a total, but not more than the income.
The income goes on line 8k of schedule 1 and the expenses on line 24b of Schedule 1.