"One individual suggested I give the prop. manager a 1099 for all the income that he kept; but it doesn't seem right."
It is exactly right, as you will then have zero taxable income. However, consult with your tax attorney/legal advisor first, since this is an ongoing case in court. Sending a 1099-MISC will without a doubt, jeopardize your case in court. As a matter of fact, you should NOT under any circumstances take ANY advice from this public user to user forum, as it could potentially impact your ongoing court case. You need to take the advice of your attorney or tax pro that you can look in the eye and hold them LEGALLY AND FINANCIALLY liable for the advice they give you. You DO NOT have that option when you take advice from this public user to user forum.
