Thanks, Monika,
Before I rec'd your message, I entered the 1099-K amount when "Easy Step" asked me about 1099-Ks.
Then, in the rental income section, I entered my parents rental property description and under miscellaneous expenses I entered the portion of the 1099-K that should be on my parents' return. There is room there to give a very brief description of what happened.
I also entered the portion of the 1099-K that was legitimately mine as an expense, and briefly stated that it is not taxable under the 14-day rule.
So now the 1099-K is showing up on my Schedule E, but all of the income is reversed through these two "miscellaneous expenses." Does this sound good? Sounds similar to what you described. The 1099-K is reported by reversed and explained! Anything else I should do?
