Scenario 1: If you deducted the $5,000 in 2019 you would have to report it as income in 2020, and issue no 1099.
Scenario 2: If you deducted the $5,000 in 2019 you would have to report it as income in 2020, then take a deduction for $2,000, and issue a 1099 for $2,000.
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