I have a micro property management company I started this year in which I run my brother's rental property. I collect rent/deposit and pay all expenses for him while he is away on active duty for 15% of the rental amount. This is my first year of operations. I have figured where to put all expenses with the exception of the payments to his mortgage company. How do I expense this? Is it a payment to him, 1099? In addition, how would I report this in TurboTax?
Of the rental income received they only thing you will subtract from that income will be your 15% cut, and the rest of it is reported in box 1 of a 1099-MISC that you will issue to the client at tax time. That's it.