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

an#toheroldguy
an#toheroldguy Member Posts: 2 Newcomer
edited April 2025 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!

Tagged:

Answers

  • rachels
    rachels FreeTaxUSA Agent Posts: 130 image

    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.
  • an#toheroldguy
    an#toheroldguy Member Posts: 2 Newcomer

    Thank you rachels.

  • Dinofan
    Dinofan Member Posts: 3 Newcomer

    Thanks, I had the same question as well, and this response answers it perfectly. 👍️

  • JRJ
    JRJ Member Posts: 2 Newcomer

    What about if your rental income for those properties are not all accounted for on the 1099. Meaning while in the example above where 600 for property B and 400 for property A is on your 1099 at 1000 but your total rental income for property B was 600 on 1099 plus an additional 400. Should one just combine the values here without setting off any IRS flags? The income will exceed what's reported on the 1099 for both properties.

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 1,052 image
    Hello JRJ,

    If you have rental income reported on a 1099 and some NOT reported on a 1099, then you have that option in the software. Report the 1099 in the software and link it to the rental record it belongs too. Then report rental income that was not reported on a 1099. Be accurate. The software will combine the amounts on Schedule E. This is common.
  • JRJ
    JRJ Member Posts: 2 Newcomer

    Maybe I wasn't clear. The reason I posted here was because I have the same issue the prior poster had. My 1099 is combined for 2 properties. So the advice given on this forum was 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.

    There is no option to split and link a 1099 for 2 properties. It just gives an option to link to schedule E and choose one property. That would be wrong as the 1 of those properties did not create the entirety of the 1099.

    Should I split the 1099misc I received (which constitutes income across 2 properties) in the 1099-misc section into 2 1099misc's? Then under Schedule E just put in the income not from the 1099? That's what I am leaning towards but am still uncertain as to how to proceed.

    By the way thanks for posting a reply to my question.

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 1,052 image

    Hello JRJ,

    Thank you for the clarification. Yes, that would be a reasonable work around. Don't enter the 1099. Split the amount between the two properties and enter the amount as if they were not reported on a 1099.

Categories