Hello - I have two rental properties that are managed by a property management company. Through 2023, this property management company's accounting system tracked the 2 properties in separate accounts, and every year I received two 1099s, one for each property. I entered the two 1099s into TurboxTax section - "Wages & Income", "1099-Misc and Other Common Income", "Income from Form 1099-MISC", along with 2 other properties that are managed by two different property management companies. Each property had its own 1099-Misc and address. Then under the "Rental Properties and Royalties" section, I entered the expenses for each property associated with each 1099-Misc (that I entered in the "Income from Form 1099-MISC" section mentioned above). The schedule E would display 4 properties with 4 addresses in individual columns.
In 2024, the property management company that manages the 2 properties changed their accounting system. My two properties are now combined into one account with combined rental incomes and expenses, and the details would give me the incomes and expenses for the 2 houses. The management company told me that for 2024, they will send me only one 1099-Misc with the combined rents for both houses. I think I still need to list the 2 houses on Schedule E separately, because Part I, 1a of Schedule E says to list "physical address of each property". How should I enter this one combined 1099-Misc into TurboTax? Do I need to get the property management company to give me two 1099 Misc, one for each house, so IRS can match each 1099 Misc to each property reported on Schedule E? Right now, the property management company doesn't seem to be willing to provide me two separate 1099s. My questions are:
1. Does IRS match the "Rents" in "box 1" on each 1099 Misc to the "Rents received" line for each property listed on Schedule E? Since the rental incomes for these 2 properties will be in one combined 1099 Misc, my 1099 Misc's won't match with the properties on Schedule E individually.
2. Would IRS raise any issues since they can't match each individual 1099 Misc to each individual property listed on Schedule E?
3. Do I need to enclose an explanation such as "there is one combined 1099 Misc for 2 properties listed on Schedule E" with the income tax forms that I'll be filing? If so, what should I say?
4. If question 1 and 2 above are ok, how do I enter this one combined 1099 Misc for the two properties to TurboTax?
Thank you for your help in advance.
