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Investors & landlords
@Critter-3 wrote:The 1099 you issue to the owners should have the GROSS income their property had come in then you should also be issuing a year end summary of all the income and expenses paid on their properties which will show a net income on the bottom line. This is the info they need to complete their own Sch E forms on their personal returns. If you don't have a bookkeeping program for property managers that will produce these summaries easily then you need to find one that does or get real good at excel.
So I receive a 1099-MISC from the commercial tenants for the GROSS rents I collect. I then submit a 1099-MISC to the owner for the GROSS rent along with the year-end summary of expenses, so they can fill out their Schedule E properly and deduct expenses paid.
Since I also paid all the expenses (before disbursing the remaining balance to the owner) and issued 1099-NEC to the contractors (ie. cleaning crews, maintenance workers, etc), how does the owner answer Schedule E - Question A & B (Part 1), where it asks "Did you make any payments in YEAR that require you to file a 1099 and if 'Yes' did you file a 1099?" when technically, the owner himself did not file a 1099 or make payments to the contractors?