I understand how Schedule E works and what income is reportable and what is not (excuse me but not all money received electronically is reportable income Eg., Security Deposits which can add up when you have a lot of turn over in tenants. There is no way to enter 1099-K on Schedule E period (only on Schedule C). So the 1099-K they will issue me is going to report a lot more money receive into my bank account based on the total of transfer transactions then what I will be reporting on Schedule E as I am required by IRS not to report "Refundable" Deposits" held in trust on behalf of the renter. Shoot if you use PayPal for rents and merchant business good luck! I hope IRS has the staff and can afford all the audit confusion this going to cause.
