All Forum Posts by: Hjiorst Fjioords

I am new to being a landlord, but have been a tenant my whole life, and many years experience with video.  My thoughts about what Ray seemed to be suggesting:  Bad.  (Although he didn't actually suggest putting up fake video cameras, just asked if you were considering doing so.)

The mere presence of video cameras does reduce incidents, but successfully using the video to prosecute or even just warn an offender will have greater effect.  Often a large percentage of problems are caused by a small number of people, so a little goes a long way.

On the other hand, a fake camera will become known to local individuals soon.  I knew that one of my former neighbors had a fake camera installed because I overheard him explaining to a police officer why he didn't have any recording of the crime that had just occurred.  I promise you, you will never feel so foolish as on the day you realize that you should have had a real video security system.

(BART had a fake camera system and now have to explain why there are no recordings of recent stabbings that took place in their stations.)

A Swann system will run you about $800 to $2k, depending on how many cameras and channels you need, and whether you are willing to buy a year-old model on sale.  A cheap investment.  They are all color, HD and have night-vision capability.  They can be installed by you, your property manager or a handyman.  They do require an internet connection if you want to view remotely, and you do!  

It is well worth the time to learn how to set up, install and retrieve the video files from them.  Do think carefully about placement, because one camera too far away or too high to identify a person might end up being useless.  

In short: A real video surveillance system is a great idea!

FYI: I did hire a professional, experienced accountant to do my taxes last year, explicitly regarding my real estate investment.  This was so I could do my taxes properly in the future.  I am confident that this year, this question notwithstanding, I got it right.

However; last year, with only two months of ownership, box 3 had $100 dollars in it.  Fortunately, the effect was negligible.  I did not closely at that 1099-MISC, and my accountant did not bring that number up, and I don't know how he handled it.  

So, I do appreciate the very general & sound advice to consult with professionals.  Rest assured that I have already done so throughout my experience in real estate.  I would not even mention this, but I don't understand why one would assume I didn't do this.

I am also confident that the answer to this question - even though I do not know it now - is simple:  "Did the PM fill out my 1099-MISC correctly?"  It is either a yes or a no.  

And, yes, I understand that one can only give their own understanding or experience on the topic.  That is exactly what I am seeking.  This is a specific question about a specific box on a specific form, and there does not seem to be a general consensus on it when I look around the internet.  I am seeking as much input and experience as I can gather (before I call the IRS or my accountant).  It's something I like to call "research."

I ask that anybody who has had this experience or who knows the answer please share your thoughts. 

Thanks!

This is my first full year as a rental property owner, and I am doing my own taxes. I received a 1099-MISC from my property manager showing the expected amount in Box 1 for rental income, and about $1200 in Box 3, "Other Income."  The property manager tells me this amount is for utilities collected from the tenant.  (Owner covers water and garbage.)

Turbotax will not account this as rental income, and wants to count it as self-employment income on Schedule C.  This is increasing my tax liability.

Based on everything else I have read, and what my property manager tells me, money from the tenant for utilities that I pay for is still considered rental income as far as the IRS is concerned.  The amount paid by us for water and garbage is certainly included as an expense for the property.

Should my property manager issue a corrected 1099? If they don't, can I adjust the numbers by deducting that box 3 amount from my expenses and also not reporting the Box 3 as income? I worry about that kind of self-help because the IRS received the 1099 and my return won't match their numbers.

Any insights appreciated. Thanks!

I'll take a chance that this thread gets bumped and somebody notices rather than post a new question.  I have a very similar situation.  This is my first full year as a rental property owner, and I am doing my own taxes.  I received a 1099-MISC with about $1200 in Box 3.  The property manager tells me it is for utilities collected from the tenant and paid by us.  This is also not being accounted as rental income, and Turbotax wants to count it as self-employment income.  

Should my property manager issue a corrected 1099?  If they don't, can I adjust the numbers by deducting that amount from my expenses and also not reporting the Box 3 income?  I worry about that kind of self-help because the IRS received the 1099 and my return won't match their numbers.

Any insights appreciated.  Thanks!