Rental property: Should I deduct expenses accounted for on the 1099-MISC provided by my property management company?

Forum|Forum|6 years ago
January 29, 2020
1 reply
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My property management company for my single family rental has provided a 1099-MISC that takes into account the rents received, property management expenses, maintenance, and repairs to the property over the course of the year. I personally paid a few expenses (~$1000) and the mortgage which are not reflected.

In walking through Schedule E for TurboTax I'm asked to input my 1099-MISC. Later I'm asked to input my property management fees, repairs, etc. Should I input the expenses that are incorporated into my 1099-MISC or only the expenses I paid on my own?

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Best answer by Hal_Al

As long as the amount of gross rent received, that you report, equals or exceeds the amount shown in box 1 of the 1099-Misc, you can do it either way.

You can use the box 1 amount as gross rental receipts and not show any of the already deducted expenses on Schedule E.

I would do it the opposite way. First report the 1099-Misc amount. You will then be asked if you received rent payments not shown on a 1099. Enter the total of all expenses already deducted by the property manager (PM). Later, when asked for expenses, enter all expenses paid by the PM in the proper expense categories, in addition to the expenses paid by yourself.

Even if you use the first method, be sure keep all detailed documentation/receipts from the PM, in case of an audit

Hal_Al

Answer

Level 15

As long as the amount of gross rent received, that you report, equals or exceeds the amount shown in box 1 of the 1099-Misc, you can do it either way.

You can use the box 1 amount as gross rental receipts and not show any of the already deducted expenses on Schedule E.

Even if you use the first method, be sure keep all detailed documentation/receipts from the PM, in case of an audit