Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated about 3 years ago,
How to classify property management income/ expense
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