Your management company is just flat out *WRONG*. But it's not your problem really, because the IRS will fine them accordingly.
All income received for rental property from *ANY* source for *ANY* reason is reported on SCH E. Period. End of Story.
You can completely disregard that 1099-MISC "as if" you never received it. Just make sure you include the amount reported on that 1099-MISC as rental income on the SCH E. There is no need to report the fact that you got a 1099-MISC, because when you e-file that 1099-MISC is *NOT* sent to the IRS. In fact, absolutely nothing what-so-ever is transmitted to the IRS to indicate the income was reported to you on a 1099-MISC.
So just add the $300 to the total of all your rental income received and report it on SCH E.
When the IRS receives their copy of the 1099-MISC from the entity that issued it to you, the IRS will question "them", not you.
