@Aquitaine wrote:
The management fees and the commission are the property manager's income. The money that is collected and disbursed is nothing but a short term deposit.......
I am not certain of the exact nature of the issue in this scenario.
Either the figure on the 1099 is reported by the property manager as income and the disbursement to owners deducted as an expense or there will be a mismatch between the figure reported by the property manager and the 1099 received by the IRS. The first method eliminates the need to compose an explanatory letter when questioned by the IRS.
