PDA

View Full Version : 1099-MISC and did not do work for and do not own a business


sstalberger
Feb 21, 2007, 03:59 PM
I recievd a form 1099 MISC from a Northern Natural Gas company. They are putting pipelines in around our property and they needed to purchase the rights to use our very small piece of land they would be crossing. The amount was for $627 and they put the income in Box 7. When I use Turbo Tax it says to file as if I am a business. I did not do any work for anyone and I do not own a business. How do I file this on my taxes? Should I have received a 1099MISC or something different?

Fr_Chuck
Feb 21, 2007, 04:16 PM
No, this is a similar thing as being in your own business, since you are now "renting" this land or the right to use.

If you are on turbo tax, there should be an area that asks if you received a 1099 mis, or had rental property

Many people receive these for commercial rental property, I recive them for all of my commecial rentals.

So try looking under rental property receipts for a place to file.

I don't use turbo tax, but this is what you should have gotten for real esate rental income

sstalberger
Feb 21, 2007, 07:22 PM
Okay. Does the real estate rental income get taxed differently than a 1099misc for business? I entered the 1099 as a business and it dropped my refund by over $200 dollars for the $627 I received. I could not understand the huge difference.

Fr_Chuck
Feb 21, 2007, 07:28 PM
I don't know how turbo tax worked, I use another system, but it is really not a separate business, just a individual with rental income, there should be a area for rental income not business income.

Fr_Chuck
Feb 21, 2007, 07:29 PM
There are some better tax experts on here, ( I just have a lot of income from rentals, )

AtlantaTaxExpert
Feb 22, 2007, 11:25 PM
For only $627, put it on Line #21 of Form 1040 (Other Income).