Property manager Income back to homeowner

[klopuppyluv]

I am a property manager basically a middle man and collect rents and then distribute them back to the property owners (minus my fee/my income).  I am confused on if I count this as income for my business.  If I do, then where do I count it as an expense.  For example, I collected 15K in rents for a property, and returned all the rents then deducted my income (fee) of $2000 for my services (my actual income).  I will be issuing this property owner a 1099-MSC for them to claim the 15K of income on their taxes, but where do I enter it going back out of my business because it is not my income.  I know I am not the only property manager that does it this way.

[MarilynG1]

You would issue the property owner a 1099-Misc for 13K, since that is what they actually received from you (after your 2K fee).  They will claim 15K rent received, and a Property Manager expense of 2K on their return.

You will file a Schedule C with your return for your self-employment income.  You can deduct expenses against this income (such as mileage, cell phone, supplies, home office, for example).

Type 'Schedule C' in the Search area to  'Jump To'  this area in TurboTax, or under Wages & Income, scroll down to Business Items > Business Income and Expenses (Sch C) to set up your business.

Here's some detailed info with useful links for Self Employment. 

[klopuppyluv]

So do I only claim the 2K in income and not the the full amount that went into my accounts the 15K?  This is where I get confused on what to claim. I think I only claim my income and then issue them the 1099 msc.  

[AmyC]

Yes, you only claim your income as rental manager. Issue a 1099-MISC and the IRS can see the amount you received was not all kept.