What is the bonus money considered as on Federal and State tax returns?
You will want to consult a tax professional.
Last year I put it in as Schedule E income for rents received.
If you are using Turbo Tax, the Deluxe version for 2014 will not let you add this. You have to buy the next version up (called business & home I think?).
Thanks Jim N. for your comment below...I think your right.
I have the same question and I recommend one simply do their due diligence (research) on how to report it.
I'm not a CPA but I do my own via HR Block premium.
another possibility is the compensation can be viewed as a devaluation of the property and the owners basis is reduced...it's a different event...
finally, is the 109o shown as S or Misc with rent checked?
Ancel Smith said:
finally, is the 109o shown as S or Misc with rent checked?
Ancel:
I filled it as a 1099, just filled in box 1, nothing checked. That was last year's return, so far nobody has come after me for doing it wrong.
I just talked to TurboTax this morning. They were very helpful. The associate walked me through the entire section. She said it was quite confusing to most people and they have had lots of calls. It seems like Turbotax recognizes our needs, but have not yet written the tax program that works easily for just receiving the bonus checks. Hopefully, they may change that by next year.
My HR Block online tax attorney rep was the key for me in doing my taxes this year for my 1099s...without her and her research on the issue of explaining the 1099 S and 1099 Misc and correct forms for showing basis in the property (Sch D) and loss in the property I would be challenged. I should be able to explain confidently if audited.