This is nothing but a work around that is crazy. The 1099-K is required on Schedule C (Trade and Business) line 1 not schedule E (Supplemental Income). The problem with this 1099-K is it was intended for business income for goods (products) and services (Labor) that use online electronic payment processing (POS transactions) not for rental payments which is caught up in this mess now because of the many Rental payment processing Apps online now Landlords have started using them to make pay rents as Paypal and Zelle could be problematic, but now it has become intwined with this new IRS requirement they have to issue 1099-K's sales of goods and services (business) which is then causing tax reporting problems . If you don't use these platforms you don't won't encounter these 1099-K problems Intuit is tell you to stick in a 1099 misc which is used for reporting payments to others you hired in excess of 600.00. What a fricken Mess!
The add'l problem is that if you received refundable amounts from tenants as in Security Deposits held in Trust the IRS says not to report as income on your taxes unless you made a deduction for repairs for which you will have an expense deduction to offset it otherwise it has to be returned to the tenant by law THE 1099-K INCLUDES IT AS INCOME AND PEOPLE ON HERE ARE TELLING YOU TO WRITE IN A DEDUCTION FOR SECURITY DEPOSIT REFUNDS WHICH THE IRS IS NOT ALLOWING.
Sorry, I will file my income and expense on Schedule E to match my financial records period. I quarentee you I will not be audited and if I am, I'm prepared!
