Subtenant buyout treatment by Master Tenant

My daughter is the master tenant on a lease in San Francisco that is being bought out.  She has had a subtenant for two years to help with the rent that the owner has never allowed to be put on the lease.  My daughter is paying a portion of the buyout proceeds to the subtenant as an incertive for her to also vacate the property.

 

My daughter will be getting a 1099 from the owner for the buyout and can she then issue a 1099 to the subtenant for her portion?