Can a 1099-MISC of the total rent of multiple properties be allocated per property?

anotheroldguy
anotheroldguy Member Posts: 2 Newcomer
edited April 22 in Income

Hello,

Let's say I have 2 properties, A and B, both under property management. Rental income from A is $600, and from B $400.

I receive a 1099-MISC from my property manager for the total rental income of $1000. No problem entering that. The program then asks, "Link this income to a rental?". Yes, I would like to do that so I click the "Link 1099-MISC" button. That takes me to a screen where the ONLY option is to link the total amount to one property, which is not at all correct. There is no way to allocate the total between the two properties.

The same limitation occurs if I approach this from the opposite direction and edit the Income section of a rental property. The only option, with regards to the 1099-MISC above, is to allocate all or none of it to one property, NOT to allocate just the amount for that property.

I am a new user to freetaxusa so it is very possible I am not approaching this correctly. If so, please correct me. If not, how does one work around this? One idea would be to enter the 1099 multiple times, each representing the rent for one property, eg., a "1099" for property A for $600 and a "1099" for property B for $400. Then one could allocate the whole amount of a "1099" to one property. However, this seems less than ideal as the IRS is going to receive one 1099 for the total, not multiple 1099s for lesser amounts, and I would like to have my filing match what they receive as closely as possible.

Thoughts? Thanks in advance for your help!

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Answers

  • rachels
    rachels FreeTaxUSA Agent Posts: 107

    Hi anotheroldguy,

    Thank you for your question! This can be tricky. When you have a single 1099-MISC that needs to be split between more than one property, you won't actually enter the 1099-MISC itself.

    You would do the following:

    1. Go to Income > 1099-NEC/1099-MISC.
    2. Delete the 1099-MISC from these screens.
    3. Go to Income > Rental Income (Schedule E). (assuming your rental is reported on a Schedule E)
    4. Click "edit" next to your rental record. This should bring you to the "Your Rental" screen.
    5. From there, click "edit" next to "Income."
    6. Answer NO to the question asking if you had a 1099-MISC. Save and Continue.
    7. The next screen will ask you to "Enter the amount of rental income for your rental during 2024 that wasn't reported to you on Form 1099-MISC." This is where you would enter the rental income from the 1099-MISC that is just for this particular rental. Save and Continue.
    8. Repeat steps 3-7 for your other rental.
  • anotheroldguy
    anotheroldguy Member Posts: 2 Newcomer

    Thank you rachels.

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