Generally, the passive activity of long term residential rental real estate is not required to issue a 1099 ever. However, there are some things that are a "Grey area" in the IRS pubs. Basically, if you are claiming QBI, this is one of the grey areas when it comes to 1099's. In such a case where you are claiming QBI on the activity, I'd recommend you issue the 1099-NEC just so you "know" all your bases are covered without question.
