My 1099misc has prepaid rent in it, how do i adjust it

[musandra4589]

I received a 1099 misc on rental income for 2017. They included January rent but I did not receive it until January 2018. How do I adjust this.

[KiaraE · Accepted solution]

You report it as is. There is no need to adjust it. It falls under the IRS terms for constructive receipts.

Income is constructively received when an amount is credited to your account or made available to you without restriction. You do not need to have possession of it. 

From: https://www.irs.gov/publications/p538#en_US_201612_publink1000270642

[jdoniach]

I have the same question, but in my case the prepaid rent was not "made available to me" by my property manager. I was not even aware of it till I received a 1099-MISC that showed a different figure than what I received (before expenses) for 2021, and queried my property manager. So what is the correct way to handle this?

[Hal_Al]

Report the full amount , on the 1099-Misc, as income.  But take an "other deduction" on Schedule E for the amount not actually received.

Don't forget to report it as income, next year. 

Some would argue that the money being in your account,  at the property manager, constitutes constructive receipt (available to you, or at least, available to be spent on your property).