Yes, you will report the income and expenses provided by the property manager for the rental property on the estate tax return.
Yes, you must file a 1099-NEC form with the IRS if you pay an unincorporated independent contractor $600 or more during a year for rental-related services. This includes payments to property managers and anyone else who performs services for your rental and is not your employee.
Reporting Payments to Independent Contractors
If you pay independent contractors, you may have to file Form 1099-NEC, Nonemployee Compensation, to report payments for services performed for your trade or business.
File Form 1099-NEC for each person in the course of your business (this includes a rental property) to whom you have paid the following during the year at least $600 in:
- Services performed by someone who is not your employee; (including parts and materials) (box 1); or
- Payments to an attorney (box 1).
You must also file Form 1099-NEC for each person from whom you have withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.
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