1099 from Property Manager- Other income and Security Deposits

[Adam Ebbers]

I received my 1099 misc from my property management company and they did a few things that don't seem right. 

First under Other Income (box 3) they listed Security deposit (refundable), pet deposit (non-refundable) and reimbursement for utilities (we had to pay some of the utilities and then have the tenant pay us later). My understanding is that these should all be considered rental income (Box 1)?  In my research this article seems pretty clear that it should be rental income and not other income: https://www.irs.gov/taxtopics/...

Second I am not sure if the refundable security deposit should show as income on the 1099-misc from the property manager. According to the IRS this is not income if it is going to be refunded to the tenant but the PM said they have to report it but I don't have to report it. I am not sure if that is correct and there is a way to note that the deposit amount is not true income when I file and that amount will be removed from the taxable amount? I am pretty sure I can't just report less income then what is sent to the IRS. This is unclear and I can't find anything from the IRS that says how this should be reported by the PM.

Any help is appreciated.