Report the full amount on a separate line as income to the Schedule E.
Then report the amount remitted on to the others as a separate expense line on the Schedule E.
So, if the amount of the 1099 were $100, report the full $100 on one line of income.
Then report the $80 as a separate expense on Schedule E.
You acknowledge the full amount of the 1099 but also pass along the income that rightfully belongs to the others.
Keep copies of your calculations and correspondence should the IRS ask questions at some point down the road.
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