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Updated about 3 years ago,

User Stats

25
Posts
7
Votes
George Habator
7
Votes |
25
Posts

How to classify property management income/ expense

George Habator
Posted

Hi, all. I manage a few properties for others using an LLC and have a few tax questions. All answers are appreciated. I'll use one property with round numbers as an example. The tenants pay rent to my LLC and my LLC pays for repairs, giving the owners the balance.

$22,000 yearly rent, $1,000 my commission, $1,000 for one repair paid to one contractor, $20,000 paid to owner.

On the Schedule C, line 1 should have $22,000.
Should line 2 show $21,000, i then dont expense the $1,000 repair on my return and give the owner a 1099 for $21,000?
Or, should line 2 show $20,000, i expense the $1,000 repair on my return and give the owner a 1099 for $20,000?
Do i need to file a 1099 for the contractor?

Thanks


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