Payment and 1099 Questions

Owner Center

1099 Questions and Answers

Why doesn’t my 1099 match my Cash Flow/Income Statement?

Remember that some income accounts may be exempt from 1099 reporting. You will need to add “Pre-Paid Rent” to all income to find your total amount on your 1099. Due to recent IRS Regulation changes, the IRS is now considering all prepaid rent as taxable income on the 1099. Therefore, the amount that was received at the end of December and was placed into prepaid rent until January is still considered taxable income the Form 1099. Below is a link to the IRS website and their updated regulations on prepaid rent and Form 1099

http://www.irs.gov/publications/p527/ch01.html#en_US_2013_publink1000218965

Owner Payments

How Are Owner Payments Calculated?

The Available Cash balance minus the reserve funds minus prepayments for each property. Owner payments are calculated after all income and expenses are recorded and management fees have been paid.

Owner Electronic Payments (ACH)

What Do I Need To Do To Receive My Owner Payments Direct Deposited To My Bank Account? Simply provide us with a scan/email of a voided check to pm@ericksonandassoc.com (or fax it to 512-894-2093) and you will be set up for the next statement cycle to have your funds direct deposited to your bank account. This easily cuts off 2 days of delivery time, as well as it is a much safer way to receive funds (no more lost checks in the mail).

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