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Deductions & credits
Yes, you can write it off as a rental expense. As you work through the rental expenses section there is a box labeled "management fees" and that's where you claim it.
Also, if I interpret one of your above comments correctly, you're paying $300 a month in rental management fees. Unless you're charging $3000 a month rent, that is gawd-awful high for a management fee. The standard is 10% of the rent paid each month, and the property manager only gets their 10% cut in months the property is actually rented out.
If you are paying an individual more than $600 in the tax year, then you will need to issue that individual a 1099-MISC. You can't do that with the Premier version of TurboTax though. You either need to upgrade to the Self-Employed version, or you can do it online with an account you create at <a rel="nofollow" target="_blank" href="https://quickemployerforms.intuit.com/signin.htm">https://quickemployerforms.intuit.com/signin.htm</... copy that goes to the IRS can be sent electronically, and you'll need to print the copy you are required to send to the individual.
Now to do this, you will "require" either the SSN or the EIN (Employer Identification Number) of the person you will be issuing the 1099-MISC to. They are required by law to provide it. Now I'm sure you can understand one's reluctance to share their SSN. So inform your property manager that they can obtain an EIN free of charge directly from the IRS at <a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-n...> and it only takes about 10 minutes.
"RIGHT NOW" you may need to send your property manager an IRS Form W-9 (<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/fw9.pdf">https://www.irs.gov/pub/irs-pdf/fw9.pdf</a>) to get the SSN/EIN that you require, in order for you to complete your taxes on time. Read the instructions included with the referenced form. If the 1099-MISC is required to be issued, then you are also required to keep the W-9 on file once it's completed by the manager and returned to you. You will need that information every year you pay that property manager more than $600.
As a good practice, anytime you hire an individual to manager your rental property, you need to make it clear to them that they don't get paid until you have a completed W-9 from them.
Also, if I interpret one of your above comments correctly, you're paying $300 a month in rental management fees. Unless you're charging $3000 a month rent, that is gawd-awful high for a management fee. The standard is 10% of the rent paid each month, and the property manager only gets their 10% cut in months the property is actually rented out.
If you are paying an individual more than $600 in the tax year, then you will need to issue that individual a 1099-MISC. You can't do that with the Premier version of TurboTax though. You either need to upgrade to the Self-Employed version, or you can do it online with an account you create at <a rel="nofollow" target="_blank" href="https://quickemployerforms.intuit.com/signin.htm">https://quickemployerforms.intuit.com/signin.htm</... copy that goes to the IRS can be sent electronically, and you'll need to print the copy you are required to send to the individual.
Now to do this, you will "require" either the SSN or the EIN (Employer Identification Number) of the person you will be issuing the 1099-MISC to. They are required by law to provide it. Now I'm sure you can understand one's reluctance to share their SSN. So inform your property manager that they can obtain an EIN free of charge directly from the IRS at <a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-n...> and it only takes about 10 minutes.
"RIGHT NOW" you may need to send your property manager an IRS Form W-9 (<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/fw9.pdf">https://www.irs.gov/pub/irs-pdf/fw9.pdf</a>) to get the SSN/EIN that you require, in order for you to complete your taxes on time. Read the instructions included with the referenced form. If the 1099-MISC is required to be issued, then you are also required to keep the W-9 on file once it's completed by the manager and returned to you. You will need that information every year you pay that property manager more than $600.
As a good practice, anytime you hire an individual to manager your rental property, you need to make it clear to them that they don't get paid until you have a completed W-9 from them.
‎June 5, 2019
11:10 PM