Each year, ConnectAll Property Management issues Form 1099-MISC to property owners to report rental income collected on their behalf. This form summarizes the income processed through our management system and is intended to help you prepare your tax return.

Below is an explanation of how to read the form and reconcile the numbers when preparing your taxes.

 

💰 What Income Is Included on the 1099-MISC

The income reported on your Form 1099-MISC typically includes several types of payments collected from residents, such as:

  • Rent payments
  • Utility reimbursements
  • Pet rent or pet fees

These amounts are combined and reported as total rental income for the year.

 

🔍 Why the Numbers May Look Different From Your Monthly Statements

The IRS requires property managers to report rental income using the cash accounting method, which means income is recorded based on when the payment is received, not when it is due.

Because of this, the numbers on your 1099-MISC may differ from your lease amounts or monthly statements.

Example

  • A tenant pays January rent in late December
  • The payment is received in December
  • It must be reported as income for that year

Even though the payment applies to the following month, it is counted in the year it was received.

 

📊 How to Reconcile the 1099-MISC With Your Records

You can easily verify the income reported on your 1099-MISC using your Owner Portal.

Follow these steps:

  • Log in to your Owner Portal
  • Navigate to Reports
  • Select Income Statement (Consolidated)
  • Set Accounting Basis to Cash
  • Set the Date Range to the full previous calendar year
  • Run the report

The total income shown on this report will match the amount reported on your 1099-MISC.

This report provides a clear breakdown of income and expenses and is the best reference when reviewing your tax documents.

 

🧮 How to Use the 1099-MISC When Filing Your Taxes

When filing your tax return, the IRS expects the gross income reported on your return to match the amount shown on your 1099-MISC.

Most rental property owners report rental activity on:

Schedule E (Supplemental Income and Loss)

General Steps:

  1. Report Gross Rental Income
    Enter the total income exactly as shown on your 1099-MISC.

  2. Deduct Expenses by Category
    Use your financial reports to categorize and report expenses such as:

    • Property management fees

    • Repairs and maintenance

    • Utilities

    • Insurance

    • Property taxes

    • Mortgage interest

    • Depreciation

  3. Calculate Net Income or Loss
    Subtract total expenses from gross income to determine your taxable rental income.

 

⚠️ Important Notes

  • The 1099-MISC reports gross income only, not net profit
  • Your taxable income is typically lower after deducting expenses
  • Your Owner Portal reports provide the detailed breakdown needed for tax filing

 

👨‍💼 Work With Your Tax Professional

Every owner’s tax situation is different. We recommend providing the following documents to your tax preparer:

  • Form 1099-MISC
  • Income Statement Consolidated report

A qualified tax professional can help ensure your rental income and deductions are reported accurately and in compliance with IRS requirements.