It largely depends on the payee. If the service you used to find tenants was not a corporation (i.e., Bob's Tenant Finders, Inc.), it is recommended that you report the payment on a 1099-MISC. Generally, payments to a corporation (including a limited liability company [LLC] that is treated as a C or S corporation) do not need to be reported on a 1099-MISC.
However, according to the IRS’s guidance here, if, as part of your trade or business, you made the following type of payment, it is recommended that you report the payment on a 1099-MISC:
- Services performed by independent contractors or others (not employees of your business) (Box 7)
Even though you are acting as a landlord, it is important to file a 1099-MISC if you are looking to take the (up to) 20% Qualified Business Income (QBI) deduction. This deduction is available to individuals and owners who seek to claim the deduction with respect to a rental real estate enterprise. A rental real estate enterprise will be treated as a trade or business for purposes of the QBI deduction if certain criteria are met. Here is some more information from the IRS on the QBI deduction.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
