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Updated about 1 year ago on . Most recent reply
1099 Rental payments from management company
So, this is my first year having a small management company where I manage rental properties for a few owners and had a few questions.
I use zillow rent payments to collect rent for all my customer's properties and then forward the owner the rent minus my 10% commission.
My questions.
1. With regard to security deposits from new tenants.
A. I think zillow has included these in my 1099 they send me.. Can anyone confirm if they do this?
B. Should I include security deposits I've received and then forward to my owners in the 1099 I issue them?
2. I'm assuming I am supposed to 1099 an owner for the gross amount I receive on their behalf not the actually net amount I pay them, correct?
for example if I have a property rented for $2000 a month and I charge 1 month rent as a turnover commission and 10% of each monthly rentals as a management fee I would send my owner a 1099 for the full $24,000 and they would just line items the turnover commission and monthly management fee as an expense on their schedule E , correct?
Thanks it..
Thanks for any input