topic 1099-K Rental Property Online Payments - Does Not Tie To My Books in Investors & landlords

1099-K Rental Property Online Payments - Does Not Tie To My Books

LLC2020 — Thu, 03 Feb 2022 22:33:40 GMT

Hi,

My tenants use an online rent payment system for their rent payments each month. This online company sent me 1099-K's that do not match the total of the rent + deposits I had for the year. It looks like they have included ACH payments that were returned due to insufficient funds / NSF's.

I have 2 questions:

(1) Should the 1099-K include these ACH payments that my bank never received?

(2) Do I need to enter this 1099-K information in TurboTax Business? Right now I enter my rents under each rental property as a lump sum. Do I need to enter it differently so that the amounts match the 1099-K? If so, what "category" do I use to enter the payments that were returned, so that the net rental income matches my books?

Thanks in advance for any assistance.

Re: 1099-K Rental Property Online Payments - Does Not Tie To My Books

AliciaP1 — Sat, 05 Feb 2022 23:36:55 GMT

I'll answer your questions by number:

1. No, the 1099-K only reports gross amounts processed. It does not report returns, fees, or any other charges to your account.

2. No, lump (net) payment reporting is just fine on your tax return. Since the 1099-K only reports the gross amounts, it often does not match a business' income dollar for dollar.

Re: 1099-K Rental Property Online Payments - Does Not Tie To My Books

LLC2020 — Sun, 06 Feb 2022 00:32:52 GMT

Thank you so much Alicia!