Received Rebates but no 1099 from another business

[jitin]

Hello,

We operate a deli in office building. Our building landlord offered monthly rebate - called "Tenant Rebate" to offset cost of operating deli. I have not received any 1099 from the landlord. Do I need to report rebate as income? It is monthly rebate in thousands to keep a facility open for their other tenants. 

Thanks.

[maglib]

@jitin 

you should report your rent net of the rebate would be the best way to handle this situation.  Or is this where you are actually paid to have the deli there and do not pay any rent expense?

If it is income, regardless of whether or not you receive a 1099 from someone, you are required to report all of your taxable income on your tax return.  You can enter it as a 1099Misc during the interview or just enter it as other income.

[jitin]

Indeed after adding rebates and subtracting rent I am on positive. And yes it's a short term incentive till people start coming to work. Since I did not receive 1099 and rebate word on checks led me to believe that I could "get away" with it. I reported rebate as income. I hope I don't get audited for doing the right thing since I don't have matching 1099 if IRS is cross checking incomes. Thanks for your opinion - it helped me.

[maglib]

@jitin  the IRS will only audit you when there is a 1099 and you failed to report it.  you are reporting it.  Often businesses do not need to receive a 1099.  Example you pay a plumber, you don't send them a 1099 but, it is still income to the plumber.  Thanks for doing the right thing.