Rental Prop Question

[Unregistered]

Client owns 3 rental units in the Florida
keys. Rents are collected expenses paid and
property managed by on site company (XYZ Resort).
Net profits sent monthly by check.
Total units on the property maybe 20 or so.
Multiple owners.
Anyway....today i get a 1099-Misc from the (xyz Resort)
with 60K showing as non-emp compensation.
this is the first 1099 ever issued in 15 yrs I have been
doing this client's return.
I faxed back that i think this was in error and the 60K should
be in box 1 as Rents. Could i be wrong. could this income be
characterized as non-emp compensation??
thanks for thoughts.

[jainen]

I wouldn't worry

I wouldn't worry about such an obvious error. Just file the tax return normally. If the IRS sends a letter, you can easily respond to it.

On the other hand, the management company is probably getting five or ten thousand dollars. It's not too much to ask them to keep the paperwork straight.

[rosieea]

A few years ago, I had a situation just like that. I did the Sch E as normal and attached a statement explaining why the 1099 MISC was in error. Never heard a peep from Sam.