topic Property management company reported NET rent on 1099-MISC in Business & farm

Property management company reported NET rent on 1099-MISC

cooleo2424 — Sun, 14 Mar 2021 00:02:50 GMT

Should gross or net rental income be reported on 1099-MISC forms by my property management company?

They reported the net amount after removing the property management fees. Do I need to request a corrected 1099-MISC? Or just report the net amount from the 1099-MISC and not deduct property management fees?

Re: Property management company reported NET rent on 1099-MISC

M-MTax — Sun, 14 Mar 2021 00:18:57 GMT

They should report the gross amount of rent they received on your behalf because they're YOUR agent. If they reported rents net of expenses the you should report whatever is on the 1099 to avoid confusion.

Re: Property management company reported NET rent on 1099-MISC

npierson7 — Sun, 14 Mar 2021 00:31:27 GMT

Enter the income as shown on the form and don't deduct the management fees separately. Management companies usually report gross income from rent on form 1099-MISC. If your company reported your gross minus their fee there, it is uncommon, but it shouldn't be an issue for you. You can still deduct other expenses associated with the rental income.