Enter the Form 1099-MISC just as you received it under each rental property.
Then, for the first rental property where the management company did not report the total rent received, but they subtracted expenses from the amount reported in box 1, add another income amount in the cash category for that property to cover the amount that was deducted from your rental income and not reported on the Form 1099-MISC. Since the income is accounted for as cash, you can deduct the repair expenses and management fees as rental expenses under that property.
No adjustments need to be made for the second property where the management company reported the full amount of rent received on the Form 1099-MISC. Deduct the expenses under this property as you normally would.
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