To clarify, are you receiving payments for rent or are you paying rents for your office space because these are two different scenarios?
- If you are receiving rents, this would be reported on your tax return as rental income. There may be a 1099 MISC issued to you by the payer reporting the rental income that was paid to you. Issuing a 1099 MISC for rent payments is not mandatory but assures accountability for IRS purposes.
- In turn, if you pay rents for the rental of your office space, you may also issue a 1099 MISC to the recipient(s) of the rent payments. Rental management agencies will often issue 1099 MISC on behalf of their clients.
- 1099 NEC is used to perform earned income that is paid to contractors. If you hire a contractor to paint a house, perform plumbing services, remodel a house etc. or other "active" services, you would issue a 1099 NEC to that contractor for the work performed. You would not issue or expect to receive a a 1099 NEC for rental payments. With this said, I have seen 1099 NEC issued for rental payments and this type of reporting is incorrect for IRS purposes
- Keep in mind, rental income received as an investor is not self-employed income and is not subject to self-employed taxes. If you are an investor that buys and sells real estate for yourself, you are strictly an investor, not subject to self-employed taxes.
Please respond back if you need further clarification. What is germane to your question is if you are receiving or paying rent payments and if you are in the business of investing and managing real estate. Once the exact scope of your income source is determined, we can provide a concise solution to your concern.
@mrpooh
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
