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Updated about 3 years ago, 11/06/2021
Tax Question- 1099 K sent to my PM company for rent collected
Hello Bigger Pockets,
I received a 1099 K for my property management company from Cozy.co for all the rent collected through their platform this year for our properties. I switched to them in March, and had previously used Quickbooks/ Intuit payments for online rent collection, and we never received a 1099 K from them so I am unsure where to report the income to the IRS. For those not familiar, a 1099 K is used to report transactions that are made via a payment settlement entities when the payments total at least $20k, or there are more than 200 payments within the year.
In the past, I have always had a Schedule E for each property, and reported the rents associated with each property on the schedule E for that property whether it was collected via check or online.
I would like to just report the rents received (including the payments through Intuit, cash/checks, venmo, and through Cozy) all through the individual properties, can I still do this that way instead of reporting the Cozy payments through the PM company on my schedule C?
I am getting mixed messages from Turbotax- one accountant said that I must report ALL rental activity under the PM company and a schedule C, another says I can 'ignore' the 1099 K from Cozy and report the rent received under each property as I have in the past (as long as the rents reported are the same or more than what is on the 1099, which they will be).
I know a lot of us use Cozy, so I was hoping to hear how others were handling this situation.
Thanks,
Kelly