1099-MISC Question Related to Landlord
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Trina_MT
Returning Member

1099-MISC Question Related to Landlord

I am working on filling out a 1099-MISC for the landlord of my business office. I have a monthly rent fee that includes a flat-rate utilities fee. I have been instructed to put this amount for the year in Box 1 "Rents."

However, in addition to the monthly rent/utilities fee, the first check I paid to the landlord included money for improvements (e.g., extending an internal office wall, new window shades) that I requested prior to agreeing to rent the office. The landlord covered a portion of the improvements to be done, and I paid the landlord for a portion of the expected cost.

Do I include the amount paid for improvements in Box 1, or do I put it in Box 3, "Other income?

Or, do I not put this amount on the 1099-MISC at all? If I do not put it on the 1099-MISC, do I have to report it on a 1099-NEC? The amount of money paid for improvements was under $600, but the total money paid to the landlord during the year was over $600. 

3 Replies
Critter-3
Level 15

1099-MISC Question Related to Landlord

You can enter it all as rent box one. You don't need to divide up the payments any further than that.

Opus 17
Level 15

1099-MISC Question Related to Landlord

I want to make sure I understand.  You are the tenant, and you are in business, and you rent an office?

 

And because you are in business, and you paid more than $600 to a person (who is not an S-corp or multi-member LLC) you need to issue the landlord a 1099 of some kind?

 

In that case, everything you paid is rent.  How the landlord divides it between rent, repairs and improvements is the landlord's problem.  You certainly don't issue a 1099-NEC, because this person is not your worker or subcontractor--they did not do work for your business.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Trina_MT
Returning Member

1099-MISC Question Related to Landlord

Correct, I am the tenant. I am the managing member of an LLC. I rent the office for my business use.

 

The landlord who is the owner of the building has an LLC, but it is not taxed as an S-corp. I paid the LLC more than $600 dollars.

 

 

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