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How Do You Link Rental Insurance Payment on 1099 MISC Form to Schedule E?

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I have a client who received a 1099 MISC form from their rental insurance company which covered missed rental income from a tenant last year. The 1099 MISC income is reported in Box 7 - which doesn't appear to be correct since it has nothing to do with payment for services rendered by the client. Is there any way to link this rental income to Schedule E rather or is the only option to identify as 'other income'?

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2 Replies 2
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Level 15
Level 15

The 1099MISC was prepared incorrectly if this is how they reported rents.

There is no way to auto link a 1099MISC with income in Box 7 to a rental Sch E. 

Ideally youd get the payer to issue a corrected one...but that's usually easier said than done.

Personally, I'd put the income on Sch C, then back it out as an expense and put it on Sch E where it belongs, that way you avoid the CP2000 looking for the NEC income in a few years.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Thanks, Lisa, I appreciate your quick response and feedback!

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