It has always been a rule that if you pay someone, (not a business) over $600 if they provide labor for your rental, you must issue them a 1099-MIsc. So, in that regard, it is not needed for QBI deduction. If this is the case, then yes, generate the 1099-Misc. See qualifications for QBI for rental at the bottom.
Form 1099-MISC,
Miscellaneous Income
File this
form for each person you paid during the year:
- at least $10 in royalties or broker payments in lieu of dividends
or tax-exempt interest;
- at least
$600 in:
- rents;
- services
performed by someone who is not your employee;
- prizes and
awards;
- other income
payments;
- medical and
health care payments;
- crop
insurance proceeds;
- cash
payments for fish (or other aquatic life) you purchase from anyone engaged
in the trade or business of catching fish;
- generally,
the cash paid from a notional principal contract to an individual,
partnership, or estate;
- payments to
an attorney; or
- any fishing
boat proceeds,
In
addition, use this form to report that you made direct sales of at least $5,000
of consumer products to a buyer for resale anywhere other than a permanent
retail establishment.
From <https://www.irs.gov/uac/about-form-1099misc>
If you meet these tests, you
may qualify to take the Qualified Business Income (QBI) deduction under the
"Conventional Rental IRS Notice 2019-07 Safe Harbor Test",
below. To claim the new QBI deduction, you need to select the button in
the rental interview that says you qualify to take it.
Conventional
Rental IRS Notice 2019-07 Safe Harbor Test:
1) On a regular basis,
does the taxpayer consult with advisors, negotiate and execute leases, consult
with or act as property managers or personally maintain, manage or supervise
the rental activity of the above property, and does this activity continue
throughout the year?
2) Does the
taxpayer, employees, agents or independent contractor of the taxpayer
spend at least 250 hours annually (per property) dealing
with the advisors, managers or personally with tenants, repair or maintenance
companies or on-site issues?
3) Does the taxpayer
maintain contemporaneous (i.e. "at the time of
occurrence") written calendar time records to prove the above
regular, continuous activity?
4) The taxpayer must
include a signed statement with the return that they meet the requirements of
this procedure.
