AirBnb: Revenue posted to my taxID - payments made to property manager

[tulumkenm94]

Hi - My AirBnb property manager used an "unusual" method where the payments were credited to my tax ID (social security number) but the actual payments went to his bank account.  Then he paid me the net amount after his commissions and expenses.   I have two options for my taxes:

1.)  Report the gross amount as revenue and report his expenses against the AirBnb income to the net I was paid.  

Example:  AirBnb credited $100 to my tax ID, then paid out fund to the property manager.  He paid me the net amount of $70 to my bank account.

2.)  Report only what he actually paid me - I never "handled" the funds in the larger gross amount (the $100 in the example).  

Or any other appropriate method suggested, thank you!

[PaulaM · Accepted solution]

Report the gross income amount for your AirBnb, then deduct as expenses his commission and other management expenses (#1 above). The result should be your net amount received in your bank account. 

[tulumkenm94]

Thank you!  That was my intuition also.  

Follow-up Question:

This property manager should receive a 1099 from me for the difference of the (example: $100-$70 = $30) $30, if that amount was over $600 -- correct?  Despite the fact I didn't "pay" him cash, the money was run through my social security number/ tax ID.  Yes?

[KrisD15]

Correct, however Forms 1099-NEC were due January 31st.

There is some disagreement as to whether landlords (Schedule E) are obligated to issue a 1099-NEC, but if you are filing a Schedule C you no doubt should have issued the 1099-NEC.