Rental Income from Property I do not Own

virgo91786 · #1 (**permalink**) 02-13-2009, 10:59 PM

I rent a cottage from another person. I do not own the property. I have a housemate who lives here with me and rents one of the rooms from me. He receives his rental money from Social Services, so it comes to me from them as a check each month. I received a 1099-MISC for this, but I don't know how to handle it since it is not my own real estate, just the cottage I rent for myself from someone else.

TaxGuru · #2 (**permalink**) 02-15-2009, 12:06 PM

This rental income is reported on Schedule E as rental income. Your CPA or tax preparer will generate a Schedule E that would report Rental income equal to the amount reported on Form 1099-Misc. This income should not be subject to Self-Employment Taxes, and the 1099-Misc should also indicate that this income is Rental Income!