I hired a property management company to manage my rentals. They collect all the rent for me and pay the expenses, repairs, etc from their trust account. They then subtract their fee and send me the remaining net balance each quarter.
1. They are going to send me a 1099-MISC for total gross rental receipts.
2. They are going to send the contractors who performed repairs on my properties a 1099-NEC (using their tax-id number).
3. My tenants will probably send the property management company a 1099-MISC for the rents they paid.
Does all the above sound correct? If so, how can I deduct the expenses paid for repairs and maintenance on my property if they used their tax id number to send the 1099's to the contractors? Should I be the one sending the contractors a 1099-misc for the repair expenses?
Also, do I need to send the management company a 1099-NEC in the amount of their management fee? This company is a small company, so I'm not sure if they are following the correct tax procedures.. could someone please verify if the above sounds like the proper procedure for a rental management company.
