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Do I need to issue 1099 Misc for a tenant provided repairs in exchange for rent?
I am a landlord. I have provided one of my tenants with free housing in exchange for rent. I will report the months without rent as "rent received" and same amount as "Repairs" on my Schedule E. My question is: Should I also provide 1099Misc for the amount calculated as repairs? There is no actual cash received, just exchange for rent?
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Investors & landlords
No, you are not required to provide a 1099-MISC for work performed on your rental property if you are not in the business of renting properties.
See Small Landlords Not Required To File Form 1099
http://www.auburnmainecpa.com/1099s-required-small-landlords/
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Investors & landlords
I would like to add to the same question.
What happens with barter rent payments if there is LLC involved and the form 1065?
Now, the rental is business.
Do I need to mail 1099 MISC for repairs in exchange for rent (no cash involved)?
Thank you!
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Investors & landlords
Yes, a 1099-NEC. Barter is the exchange of goods or services without the payment of money. When barter occurs in the course of a trade or business, the following rules apply.
- The fair market value of goods and services received must be included in business income in the year of receipt and is subject to self-employment tax.
- Associated expenses are deductible as business expenses.
- Bartering income is subject to 1099 reporting requirements.
- Barter exchanges report trades on Form 1099-B,Proceeds From Broker and Barter Exchange Transactions. Topic No. 420 Bartering Income | Internal Revenue Service
You did not use a barter exchange service so you need only file the 1099-NEC.
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