I RECEIVED A 1099 FROM BOTH HUD AND YOU FOR THE SAME TENANT, WHAT DO I DO? - Federal requires that anyone who pays out $600.00 or more to anyone else, must report it. Consequently, both HUD and our office are correct in the amounts we are reporting. The "fix" for the problem is simple. Add both 1099's together and report the sum total as gross receipts. Usually the HUD 1099 is smaller than the one you received from our office. Next, deduct the HUD 1099 amount as an expense. You could itemize it as "HUD Duplicate 1099". Your bottom line net result will be the same.

If you do not add the two 1099's together and report the total as gross income, it will flag the IRS and probably cause a low level audit.

PLEASE CLOSE THIS WINDOW BEFORE PROCEEDING