Solved: My property manager pay for repairs, deduct it from my rental income but send 1099 to the contractor with his tax ID. Can this be deducted as payment to the Manager ?
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My property manager pay for repairs, deduct it from my rental income but send 1099 to the contractor with his tax ID. Can this be deducted as payment to the Manager ?

How to report the expense on repairs because I do not pay to independent contractors neither do I have their tax ID. I pay all the fees to property manager.  On the top, property manager says he reports all the expense paid to independent contractor with his tax Id not mine. How can claim this deductions  as payment to contractors or to property manager ?

By the way, I send the property manager with 1099 showing all the expense,  I paid to him.  I did not have any way to send 1099 to independent contractors as he already send it with his tax ID last year end to independent contractors.

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My property manager pay for repairs, deduct it from my rental income but send 1099 to the contractor with his tax ID. Can this be deducted as payment to the Manager ?

You would report the full amount of your income for your rental property.  Then use the amount that the property manager paid for repairs on your behalf as an expense for repairs for your rental property.  This effectively reduces your income to the amount that you actually received. 

Do not worry about needing to issue a 1099 to the independent contractor who did the repairs.  They were technically paid by the management company (although with funds generated by your rental property).  It would be correct for the management company to issue the 1099 to the independent contractor instead of you. 


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New Member

My property manager pay for repairs, deduct it from my rental income but send 1099 to the contractor with his tax ID. Can this be deducted as payment to the Manager ?

You would report the full amount of your income for your rental property.  Then use the amount that the property manager paid for repairs on your behalf as an expense for repairs for your rental property.  This effectively reduces your income to the amount that you actually received. 

Do not worry about needing to issue a 1099 to the independent contractor who did the repairs.  They were technically paid by the management company (although with funds generated by your rental property).  It would be correct for the management company to issue the 1099 to the independent contractor instead of you. 


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