I just started renting a condo in late 2019 and the property management company sent me a 1099-MISC for a small amount of income from a handful of rental days.
It is my preference to keep my condo as a 2nd home and not a rental property for 2019 and it sounds like this is allowed. Per IRS rules if a 2nd residence is rented for less than 15 days then it's not considered to be a rental and there is no need to report income and expenses on Schedule E.
My question is how do I disposition the 1099-MISC I received from the PM company? In other words, how do I address the $658 in my tax filings that was reported to the IRS by the PM company that I wasn't obligated to report? Can I just ignore it or is there some other way that I should be addressing this tax form?
This isn't about trying to avoid tax on $658. It's more about my desire to delay the conversion of this condo to rental property and being subject to more depreciation recapture and capital gains when I sell.
