@RobertB4444 wrote:
Unfortunately, because you received a 1099-MISC and sent a 1099-MISC you need to include both the income and the expense on your return.
Even though it zeroes out in the end the IRS matches forms with social security numbers and EINs. They will look for that $100K in income on your return and wonder why it is not there. Then, as a separate payment to you, include the $2000 in income that you receive from the client.
Alright. Makes sense. I assume I declare the rental income ($100,000) on Form 1065 (Income section 1a) as Gross receipts or sales. I also declare my $2,000 management fee there as well, right?
Where/How do I declare the $100,000 in gross rental expenses (1099-MISC issued to owner) on Form 1065? Is it listed under Income Section 1b (Returns and allowances), or do I list it as a Rent Deduction (Item 13)?
Thank You
