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Level 2
posted Mar 14, 2020 7:40:12 PM

1099-Misc from the landlord with incorrect amount

I received 1099-Misc from the landlord for $6,000; however, the first rent that was November and it was $2,000 but I received only $375 as the rest was for the landlord's fee. For December the rent is $2,000 but I received $1,875 totaling $2,250 for 2019.

The tenant paid $6,000 in 2019 but $4,000 was for a security deposit kept by the management company and the management company kept the $1,750 as payment for their service ($1625 for November and 125 for December).

Should the 1099-MISC sent by the management company be $2,250? 

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1 Replies
Expert Alumni
Mar 14, 2020 8:26:24 PM

They can report the 1099-MISC this way since the rent was first paid to you. 

Then you report the expenses, such as the management fees. 

You'll also need to back out the security deposit since that is not income unless it is used for the last months rent, in which case it is claimed as income in the year it is forfeited. Report it as a "Security Deposit Liability Expense" to remove it as income for this year. 

Be sure to include it as income if you keep it, but hopefully the tenants will be great and the security deposit will eventually be refunded to them.