1099 misc for rental property?

Every year I file with turbotax this year was my first year doing a 1099 misc. Last year I bought a new house and made my old house into a rental property. When I entered in my w2 (made 63k) and new house into turbo taxes I was getting 1700+ and then I entered in my 1099 misc and it went down to 7 dollar. After itemizing my deduction it went up to 1300+. My question is why did it go down when I entered my 1099 misc. Is it possible that I missed something. I do pay a management service that sent the 1099 so could they have done something wrong on there end? Should my overall deduction be more then 1300 dollar?

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  • Anonymous
    1 month ago
    Favorite Answer

    Turbo tax lets you jump to specific forms.  If you know how much you charged in rent (which was apparently collected by the management company), make sure the amount of income on schedule E isn't double.

    Note, this is crucial--your basis for depreciation in the rental house is the LESSER of the fair market value at the time of conversion or what you paid, for the building only.  (You can't depreciate land.)  Make sure you get this right.  For some individuals, the depreciation can be more than the income.

    When you itemized, make sure the mortgage interest (if any) for the house that is now a rental property is properly allocated between when it was personal and when it was a rental.  You will split the amount you paid across schedule E and schedule A.If any of this is meaningless to you, SEE A PROFESSIONAL.

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  • 1 month ago

    Because that 1099 is income, so you owed more taxes. So your refund went down because you had less money overpaid.

    You just really do not understand how taxes work. No one did anything wrong

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  • 1 month ago

    Your refund went down because you had more income but not more tax withheld. 

    If you hadn't had enough tax withheld, you should adjust your W4 or file estimated taxes but that wouldn't be necessary since you do have way to much tax withheld are your W2 employer. 

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  • 1 month ago

    The amount on your 1099-misc is income. When you add income your tax liability goes up (causing the refund to go down). It would be the same if you added another W-2. As you add deductions, your tax goes down and refund goes up.

    I like that TurboTax shows you a running total of the tax owed or refund because it shows you the effect of each item. 

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  • 1 month ago

    It isn't clear what you were filling out. There is a Schedule E for rental property where you put your rental income and expenses, including depreciation.  I don't know the details, just that Schedule E is required.  Just reading what you said, it sounds like you just entered the 1099 on your 1040.  That would be wrong.  Follow Max Hoopla's advice.

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  • 1 month ago

    This is out of your league. Go to a professional preparer with you rental and get it done right.

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  • 1 month ago

    It went down because you had more income, which means the government keeps more money, and you get back less.

    Your overall deduction was more than $1300. The amount of a deduction is the amount of income that it offsets, not the amount that it raises your refund.

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