Let's say I'm renting out two different properties as a sole proprietor and am managing my own property. Folks sometimes say that I would not need to issue 1099-NEC forms as the law was repealed in 2011. However, I am also seeing folks point out that the IRS specifically states that if you are trying to claim QBI status without the onerous Safe Harbor conditions, by qualifying as a Section 162 trade or business, you better be issuing 1099-NECs as the IRS states that this is necessary for such a qualification. My sense is that in such a case, you do need to be issuing 1099-NEC forms.
Assuming I am correct in this, my question follows. Given this hypothetical case where I have two rental properties and they are treated as separate QBIs (not aggregated). If I have a sole proprietor contractor perform over $600 of work during the year on both properties, should they be issued separate 1099-NEC forms for each property, or can they be issued a single form? Relatedly, if the contractor performs $300 of work on each property, does that put them over the $600 threshold for being issued a 1099-NEC form? Also, if the rental house is my home but 20% is rented out (individual bedrooms), would a $1000 payment to a contractor count as a $1000 payment or a $200 payment for the purposes of the 1099-NEC threshold?
