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Direct Access To All Multiple
Listings Like Realtors®

(Prices and inventory current as of Nov 30, 1999)

See Pictures and updates (icon)See photos and updates from listings directly in your feed

Share with you friends (icon)Share your favorite listings with friends and family

Save your search (icon)Save your search and get new listings directly in your mailbox before everybody else

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Understanding Your 1099 and Year-End Investment Property Statement

Understanding Your 1099 and Year-End Investment Property Statement

At the end of the year, we complete the final property accounting in early January and send out your IRS Form 1099 and Investment Property Statements. These documents provide a detailed overview of your property’s financial performance, giving you clarity as you prepare for tax season. Let’s address the most common concerns to make things simple and efficient.

What’s Reported On Your 1099?

Your IRS Form 1099 reports the gross rental income received for your property during the year. This amount includes all rents collected before any deductions are applied.

The gross income is not the same as your taxable income. Your CPA will calculate taxable income by deducting eligible expenses like property management fees, repairs, utilities, HOA dues, insurance premiums, and property taxes. For a deeper dive into potential deductions, check out our guide on Rental Property Tax Deductions.

The “13th Month”: Why Does My Income Look Higher?

Occasionally, the timing of tenant payments can make your income seem higher than expected. For example, if a tenant consistently pays rent on the 1st but pre-pays January’s rent on December 31st, this prepayment will count as income for the current year. This can create the appearance of 13 payments in a calendar year.

This scenario is common and complies with IRS cash-based accounting rules. Your CPA can advise on properly reporting such payments, but rest assured, the prepayment is only included in the year it’s received and will not be counted again in the following year’s Form 1099.

Accessing Your Investment Property Statement

YYour Investment Property Statement provides a breakdown of your property’s income, expenses, and distributions for the year. Here’s how to access it:

  1. Log into your Owner Portal
  2. Navigate to Statements in the left menu.
  3. Download the statement for the period January 1st through December 31st.

If you have trouble accessing your statement, feel free to contact us for assistance. We’re here to help.

Understanding Your Statement

The Investment Property Statement isn’t just a summary, it’s a detailed report including:

  • Total rental income: All rent collected for the year.
  • Itemized expenses: Repairs, management fees, and other charges.
  • Distributions: Amounts paid out to you.
  • Year-to-date summary: A quick snapshot of your property’s financial performance.

Security Deposit Reporting

Security deposits are not included in your IRS Form 1099, as they are not considered rental income. These funds are held separately and used for tenant-related expenses or refunded to the tenant after move-out. However, if any portion of a deposit is applied to repairs after a tenant vacates, that amount will be treated as income and reported accordingly.

Monthly Statements

We provide monthly statements detailing your investment property’s income, expenses, and maintenance activity throughout the year. The year-end statement consolidates this information, making it easy to review and prepare for tax season without any surprises.

Why These Reports Matter

The IRS Form 1099 and the Year-End Investment Property Statement are critical for accurate tax preparation. While we report your gross income, your CPA will help identify eligible deductions and finalize your return. These documents streamline the process, saving you time and reducing the stress of tax season.

Performance Reviews Improve Your Bottom Line

Transparency and organization are key to maximizing your property’s performance. Beyond monthly and year-end statements, we offer mid-year performance reviews to help you track your property’s financial health. These reviews identify opportunities for optimization and allow proactive budgeting for significant updates like HVAC replacements or appliance upgrades.

Planning ahead helps preserve your property’s value while minimizing unexpected expenses. Contact us to schedule a performance review and start the new year with a clear plan for your investment.


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