All Forum Posts by: Jason Harkless

@Steve Vaughan, sorry to tell you, but your thought is incorrect that "The PM should only be reporting the tenant portion"

After quite a bit of research, of which everything pointed to HUD being wrong, I finally picked up the phone and gave them a simple call. It turns out, HUD claims the 1099 was sent to me mistakenly and was never sent to IRS but nevertheless, they still issued me a new 1099 with 0 amount on it.

I am very frustrated with said tax CPAs. 2 different ones have not known the answer to this question and others have offered "opinions".  I am beginning to think that there isn't truly a written decree on this issue, which is mind boggling.

No, they are remote, definitely need PM. While you and I feel this is obvious,  can anyone point to written direction on this? The PM believe they are to report on ALL funds the receive.

Tenant pays A. HUD pays B. Total rent collected (C) = A + B.

PM files 1099 = C, HUD files 1099=B, IRS think I made B + C, which I did not.

I contend that that PM should only be reporting A, since they know the exact amount each month that they collect from tenant vs what HUD sends in.

There does not appear to be any real IRS rule on this. But what I don't get is that this is happening to hundred, if not thousands of landlords across the US- how is there not a steadfast procedure for this???

So, my first year receiving 1099s for rental property and the local housing authority issued me a 1099, while the 1099 my PM issued including ALL rent $ they received, effectively meaning the IRS thinks I made more than I did. I realize I could choose to ignore and report the correct amount, but that is a serious red flag for audit, so I want to get down to the truth. (I have researched online quite a bit and can not find IRS guidelines on this).

Who should be sending this to me?