Not sure which tax year to use

[NotSoFair]

Hello,

I purchased a rental towards the end of 2013 and it was rented starting 1/1/2014. I have a property management company managing this rental. They paid me the net rent (gross less their commission)sometime in the first week of Jan 2014. However, they sent me a 1099-MISC for the gross rent for 2013, may be because the tenant paid a couple of days prior to moving in.

So, do I account for this rent in 2013 or 2014?

Thanks

[mwcpa]

since your "agent" collected the money in 2013 this is 2013 income.

under the law, constructive receipts occurs when you or your duly authorized agent receives a payment.

So, examples....

A check is cut on 12-31-13 by a customer, who mails the payment on 12-31-13. the check arrives on 1-5-14. A 1099 comes on 1-31-14 and it includes the 12-31-13 payment. This is not income in 2013 and the 1099 is not wrong.  To make things easy for IRS, report the entire 1099 and claim a deduction for the amount not received.  Remember to report the extra income in the year received.

A check is cut on 12-15-13 by a customer, who mails the payment on 12-15-13. the check arrives on 12-31-13 and you place it in a draw and deposit it on 1-5-14.   A 1099 comes on 1-31-14 and it includes the 12-15-13 payment.   This is income in 2013.

[NotSoFair]

Thank you. That was very helpful.

Sorry I couldn't reply sooner.