If I am completing a Schedule E for a rental property (vac home I rent out). Form 1099k has the gross amount in box 1, but I need to deduct refunds. Where do I do this?

[AnnetteB · Accepted solution]

Since the Form 1099-K is not entered explicitly anywhere into your return (because it can report many things), go ahead and reduce the income reported on the Form 1099-K by the amount that was refunded and report that reduced amount as your rental income for the property.  There is not a specific field to enter refund amounts for a rental property.

Be sure to keep good records showing how you calculated the total income reported for your rental in case it is ever questioned.