1099 Misc

[Tax Prep by Deb]

I have a client who received a 1099 Misc and when I asked her what it was for she said that she is paid to manage the apartment complex she lives in.  This is by no means her full time job, but I'm not sure how to report this.  I feel it should have been a 1099NEC but she was issued a 1099MISC with the amount in box 3.  Do I still report this on Schedule C or as other income?

Thanks in advance!

Deborah

[jasdlm]

Personally I would flow it to schedule C.

[Lee B]

Interesting, I used to be that arrangements like this were handled as reduced or free rent.

[BulldogTom]

@Tax Prep by Deb It is facts and circumstances.   Does it rise to the level of a business?   How much time does she spend managing the apartment complex and what percent of her income does the payment represent?   Does she hold herself out as a professional at managing apartments?   Keep separate bank accounts for the payments?   Derive any amount of enjoyment from the activity?   Only you can ask the questions and then apply the facts to the taxpayer's situation.   Just be ready to defend to the IRS when you come to your decision.

Tom
Longview, TX

[Lee B]

sounds like an employee

[GLJEANNE]

Was she hired as a caretaker,  paying reduced rent?  Then the reduced part gets reported on 1099-NEC.  Not an employee, but I'd probably go with 1040 other income subject to social security.