My tenant paid my property management company rent for the months of January-May of 2017. The property management company explained that they are not legally allowed to distribute the money to me until the corresponding months in 2017. However the 1099 provided by the property management company included all 5 months of prepaid rents for 2016. Given that I have not actually received the rental income during 2016, should I be including it within my 2016 return? It is likely it will be difficult to get a corrected 1099 from the property management company, so is there a way to include the prepaid rents as income on my 2016 return and then expense it out so that it would not be included until 2017?
