1099K VRBO condo rental
I received a 1099K listing $25,395.47 for the rentals for 2021 from VRBO. There was a glitch in their technology.As a result the gross rental income from 2020, $14,825.82 and the gross amount from 2021, $10,233.10 was combined for this year. The error was a result of VRBO closing my access to the funds for the 2020 rentals. After many calls and reentering all the information the money all came through in 2021. I kept records and listed the rental income from 2020 on last years income tax. How can I list the $23,395.47 for 2021 and subtract the rental income from 2020 so I am entering only the rental income for this year 2021? Thank you for any suggestions. Your column is most helpful.
Terry Says
Since it’s almost impossible to reach the IRS for personal help on issues like this, here is my “blind” suggestion. Just list the income you actually received (the smaller amount) on your tax return — but attach the 1099k. There is a place on your tax return to try to explain those discrepancies — though I have no idea whether they will bother to look! Right now, they are just setting those returns aside (11 million and counting!).
Can you structure your return so they don’t owe YOU money in the form of a refund? If so, do it. Because you will likely to be waiting a long time to get that money!
Of course, taking this route will eventually trigger an IRS inquiry. And THEN you can try to explain that you paid taxes on that amount in the previous year. Keep good records, and multiple copies.
This is, for sure, going to be a long-running hassle. You decide if it’s worth your time and effort, based on the amount of taxes you would owe if you pay on the current 1099.
