Generating a 1099 for vacation rental housekeeping service

Forum|Forum|3 years ago
January 20, 2023
13 replies
133 views

I bought a vacation rental property in 2022 so this is the first year that I'll be preparing a tax return including income and expenses from the property. We utilize a housekeeping service (LLC) to clean the property after every rental. We only own this one rental property and we operate it ourselves (not through a business or LLC). Am I required to generate a 1099 for the housekeeping service?

Not A Product Question

Best answer by Anonymous_

I found this article that says private landlords aren't required to file 1099 to vendors - https://www.keepertax.com/posts/do-i-need-to-file-a-1099-for-my-rental-property

@Jeff0412 wrote:

I found this article that says private landlords aren't required to file 1099 to vendors - https://www.keepertax.com/posts/do-i-need-to-file-a-1099-for-my-rental-property

1099s are for trade or business reporting. Unless your rental activity rises to the level of a trade or business, you probably do not need to file a 1099 for payments made to vendors.

However, your rental activity can be treated as a trade or business for the purposes of the Section 199A (QBI) deduction if you qualify. The link below is the Rev. Proc. 2019-38 which provides a safe harbor for that purpose.

See https://www.irs.gov/pub/irs-drop/rp-19-38.pdf

In that event, you would almost certainly would want to issue 1099s where applicable to substantiate the QBI deduction.

PattiF

Level 15

It depends, you have to file a 1099-NEC if you made payments of at least $600 during the year then you are required to use Form 1099-NEC to report the payments.

Please see this IRS article for more information.

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Jeff0412Author

Level 2

What's the best way to generate a 1099-NEC for the housekeeping service? They sent me their W9.

JohnB5677

Level 15

These are the guidelines for issuing a 1099-NEC.

If the business you paid is a C corporation or S Corporation, then a 1099-NEC is not needed.
Anyone else that you paid a combined total of $600 in one year for services must be issued a 1099-NEC.
Payments for products and materials should not be included in the computation of the payments.

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