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Why is my 1099 income statement way different than the total money sent to my bank account?

Many people expect that there 1099 income statement will match their total for the year of owner draws received.

However the IRS considers that when income for properties we manage is received by us into our trust account, it is at that point income for our owner. This is because a trust account is by definition money held on behalf of someone other than the account holder.

Therefor your 1099 statement will be a statement of gross property income. When filing your taxes you can use your end of year statement(s) which will be on your portal in order to document expense deductions on your taxes..

Updated on August 10, 2019

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