Posted by JHyre in Ohio on February 17, 2003 at 17:14:55:
Treat it as if you recieved the money and then paid the expenses yourself. You have income and an offsetting deduction if the properties are ready to rent, and income and basis build-up if not ready to rent…the latter is a bummer, because you’d pay now and deduct later.
John Hyre
1099 yes or no - Posted by Thaddeus Rowell
Posted by Thaddeus Rowell on February 13, 2003 at 15:53:27:
I need help!!! I bought 5 properties from a seller/prop. manager last year(out of state). It was a no money down deal and he agreed to pay all the expenses, mortgages, etc. until they were in good condition and rented. He wants to 1099 me for all the expenses that he had to shell out b/c I had no out of pocket expenses, which sounds okay to me. I talked to an accountant over the phone and he thought otherwise. How do we handle this situation without either of us getting in trouble w/ the IRS.