I own a rental property. I had a tenant abandon the property and so the security deposit was kept. The property management company reported this on the 1099-MISC as Box 3 Other Income. Should it be considered Box 1 Rents, since the income was the result of a rental? The only guidance I can find from the IRS is non-specific on if it should be Box 1 or Box 3 - Only stating "If you keep part or all of the security deposit because the tenant breaks the lease by vacating the property early, include the amount you keep in your income in that year." (irs.gov/taxtopics/tc414).
