1099-MISC for rental income for temporary housing from insurance company

[Raymay]

Have never run into this before. Client received a 1099-MISC with Box 1 figure. They helped a neighbor by letting them live in their home after a fire destroyed their's. I know it's taxable income but is it eligible for the QBI deduction?

[Raymay · Accepted solution]

Not eligible because they are not in the business of renting their property.

[IRonMaN]

Good answer! 👍

[qbteachmt]

"by letting them live in their home"

And charging Rent, apparently. That's why it is in box 1.

[Raymay]

Didn't charge rent but the neighbor has out of home living insurance so my client is being paid by the insurance company not the neighbor.

[sjrcpa]

But it is still rental income.

[qbteachmt]

"so my client is being paid by the insurance company not the neighbor."

This goes right along with "let them stay" as in, gee, they are Being Paid.