How is my 1099 income calculated?


The total income reported for each of your rental properties will be the GROSS rent & other owner operating income collected for the year + the net change in prepaid rent funds held from the year prior. 

Gross Income:

"Gross" income indicates total income collected before adjusting for expenses. This will be higher than the amount paid out to you during the year. To see the total amount paid out to your bank account, please refer to the "Owner Distribution/Draw" line under the "other items" section of the cash flow statement.


Total Operating Income: 

Rent (Including Pet Rent) + reimbursements to owner paid by tenant (which can be found itemized under the section of your cash flow statement titled "OTHER OWNER OPERATING INCOME [Paid by TENANT/OTHER]."


Prepaid Rent: 

Rent paid by tenants in advance of the due date is not applied to the charge and paid out to the property owner until the corresponding rent charge becomes due. You can find your prepaid rent total under the “other items” section at the bottom of your cash flow statement, labeled “PREPAID TENANT FUNDS (held until charges due)." 

• A positive prepaid rent amount on your statement increases the total reported income for the year and typically results from rent payments made at the end of December for January rent.

• That income is not reported again in the following year, when it will show as a negative prepaid rent amount (reduction to reported income).