Who Fills It Out? - Landlord Forum thread 323585

Who Fills It Out? by 1099 Requirements (OK) on August 30, 2014 @19:19

I own a home in Oklahoma (live in a different state) and recently hired a local property management company to manage my rental property.

I read about 1099-MISC's but I'm confused (as always by the IRS).

Who fills them out at the end of the year? Do I fill one out for the property management company, do they fill out and send one to me, or both?

Just very confused.

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Re: Who Fills It Out? by Katiekate (New York) on August 30, 2014 @19:47	[ Reply ]

If you paid them...then you need to have the company 04 number. If it is just an individual then you need the SSNO. If order for you to declare the amount you paid them..you need to report it to the IRS. You notify them by sending a copy of the 1099 to them. You fill it out..you send it to them. I think the cut off amount is $500, above that you need to report it on the 04 number or the SSNO.

Re: Who Fills It Out?

Re: Who Fills It Out? by Bryan (Ia) on August 30, 2014 @20:04	[ Reply ]

You are employing them so you send the 1099. You are not in there employee so they need not send you a 1099. The money they send you is not theirs it is yours.

Re: Who Fills It Out? by Kim (WV) on August 30, 2014 @23:25	[ Reply ]

KatieKate is correct except in one particular. The cut off is $600 (unless it has been changed since last year). Anyone you pay (company or individual) for goods or services $600 or more during the calendar year, you should send a 1099. I don't mean merchants like Lowes or the local hardware or paint store though. I mean people like: the guy who does your mowing on your rental; the guy that put in your new sidewalk on your rental house; the person who did your roof repairs on your rental house; the person who helped clean out the rental and prepare it for the next tenant; the person who constructed the built-in bed in the rental house, the local landscaping company who built a retaining wall at one of your rental houses, etc. In other words, all those independent contractors who work on your rental properties. You should have everyone who does work on your rentals who you anticipate you will be paying $600 or more in the course of the year fill out a W-9 before they do the work. That way (1) they know ahead of time they will be getting a 1099 from you and the income will be reported to the IRS and (2) you won't be scrambling around in January trying to pry information you need out of them in order to do the 1099. (Been there, done that, contractor wouldn't respond, had to send in form without SSN--there's a procedure to follow if you don't have the SSN but it's a pain in the neck). Some contractors don't like getting a 1099 and won't work for you because they don't want to have to report their income and pay their SSN and income taxes on it. It's best to know this upfront, before you hire them. It's one of the questions I ask a contractor before I work with them. If they won't do things on the up and up (fill out a W-9, agree to pull permits when needed, be licensed (when it's required) and so on, then I move on and find someone who will. I pay my taxes and do things legally and I don't want to deal with those who don't. The 1099 is a very simple form and takes very little time to prepare. Basically all you need, if memory serves, is their name or the company name, the individual's SSN or the company TIN (taxpayer identification number); the mailing address of the individual or business; and the amount you paid them during the year. That's pretty much it, besides your name, SSN or TIN, and address. An accountant or CPA isn't a bad idea. But if you want to do it yourself, TurboTax has a program for preparing tax returns for those that have rental property. My husband does the taxes (I do the 1099s though) and he's been really happy with it.

Re: Who Fills It Out? by Kim (WV) on August 31, 2014 @00:28	[ Reply ]

Just to be crystal clear...yes, you fill out the 1099 at the end of the year for the property management company if you paid them $600 or more over the course of the current calendar year. You should send them a W-9 to fill out so you will have all the information you need to fill out the 1099. You will also need a transmittal form for the 1099s that you send in to the IRS with the 1099s. The transmittal form is IRS form 1096. Order all these forms now from the IRS (they are free and you can order them online) so you will be ready to do them in January. You must send out all 1099s to the individuals/companies you paid by 31 Jan and send the transmittal form and 1099s to the IRS by the end of February (if memory serves). It's really not complicated but you must be careful to "dot your i's and cross your t's" so to speak.

Re: Who Fills It Out?

Re: Who Fills It Out? by Kim (WV) on August 31, 2014 @13:54	[ Reply ]

Guess I should have put this first: "To put it simply, you are required to issue a 1099-MISC to any subcontractor that is not a corporation (S corp or C corp). An LLC, whether single-member or multi-member, is not a corporation, so you DO (emphasis mine) have to issue a 1099-MISC to an LLC. You also have to issue a 1099-MISC to a person, a sole proprietorship, or a partnership, because none of them are a corporation." (from Turbo Tax website) So you need to find out if your property management company is a corporation or not. If it's an LLC, sole proprietorship, partnership or individual, then yes, you'll have to issue them a 1099-MISC. If they are a corporation, then generally speaking, no, you don't issue a 1099. There are some exceptions to the rule about not having to issue a 1099 to corporations but the instructions for the 1099-MISC covers that.

Re: Who Fills It Out? by anonymous on August 31, 2014 @23:23	[ Reply ]

The property manager should be doing this, i.e., generating 1099-MISC forms. The property manager should send the W-9 form to the contractors he hires at your rental home. When he gets the tax ID # he will need to send the 1099-MISC by Jan 31st to the IRS and to the contractor for income reporting purposes. Now, you are paying the property manager, so you should send the W-9 to them now, and send in a 1099-MISC by Jan 31 to the property manager and to the IRS.

Re: Who Fills It Out? by CA Prop Manager (CA) on September 1, 2014 @13:06	[ Reply ]

Lots of misinformation here. Your property manager will file a 1099 reporting gross rents paid to you. This is legally required. If they don't do so, get a real property manager. Your property manager should also be filing 1099s for any tradesmen that they paid on your behalf that was paid above the required minimum. If they don't do so, get a real property manager. You do not file any 1099 reporting fees paid to your property manager if they are incorporated. Only do so if they are not.

Re: Who Fills It Out?

Re: Who Fills It Out? by Paul on November 28, 2018 @08:58	[ Reply ]

Those 1099-MISC you're talking about is the tax form for an individual contractor. LPMC you've hired must fill it out as long as you must send it to them