Question

I file a 1065 for a short terms rental business (LLC passthrough), however Airbnb and VRBO sent personal 1099-k

Forum|Forum|1 year ago
April 9, 2025
1 reply
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I run a short term rentals to which we file on a 1065 as an LLC partnership between my wife and I. We have an EIN. All AirBNB and VRBO revenue gets deposited in in a separate business checking account.

This year both AirBNB and VRBO sent 1099-Ks associated with my SSN. These both should be business revenue, and not handle on my personal return (although net profit/loss is captured on my personal return).

How do I handle? Will it be flagged if I ignore it on my personal return and my my business return as I have done in years past?

Best Regards,
Joe

Ask the Experts - Tax Due - April 2025

B

BrittanyS

You will need to make a nominee entry on your personal return for the K-1. See DianeW777's post regarding these steps:

"Since this shows the full amount under one person's name then each person should report their share of the income on their individual tax returns.

Options: (Option 2 is recommended)

If you want to nominee the portion to the person whose name and social security number (SSN) do not appear on the form you can use the following information to do so.
The person whose name and SSN are on the document can simply include the income, then as a Miscellaneous Expense and write the words 'Nominee Name XXX-XX-XXXX (SSN of the person who is claiming the other income.

Nominee returns.

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received). You must also furnish a Form 1099 to each of the other owners.

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here:

See the link below for more information:

Nominee Entry

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E

elbanevAuthor

Thanks for the detailed reply.

Since they are under my name and SSN, would the nominee by my business name and business EIN?

Do I have to file by mail as opposed to using to Turbo tax to digitally transmit? How do I attach the nominee form in turbo tax

DaveF1006

RobertB,

Thanks again for your continued support. I certainly do not want to be penpals with the IRS and would like to get it accounted for on the 1040. I'm having a bit of trouble with en

In EZStep Mode, Federal Taxes, Wages&Income, I enter both Airbnb and VRBO 1099-Ks into the "Income from Form 1099-K". My taxes owed jump higher.

Now in Forms Mode, I click on the 1099-K Wks (AIRBNB) and at the bottom of that form it has a 1099-K Reconciliation section. On 2a, I clicked on Incorrectly reported amount and selected all. This seems taxes my taxes back down to the the expected amount.

Will this work (avoiding being penpals with the IRS)?

If not, I have tried to get into Schedule C and make edits as instructed, but I can't seem to figure out the mechanics of it. Do you mind telling which lines I need to edit on Forms mode on Schedule C?

Thanks,

Joe

Yes. Your reconciliation step removing the incorrect amount is allowed. If you needed to edit the Schedule C, you would go to the forms mode in your return and look for Schedule C. You would make the edits in the Schedule C worksheet that appear below the Schedule C.

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