1099 Misc

[EvnThough]

Should I issue a 1099 Misc to someone I paid a monthly fee to that I stayed with in an (illegal) crash pad -- basically subletting with no contract? The lessor has a lot of people living with her on and off, making money over and above the rent she pays to the apartment building management, who apparently doesn't know what she's doing. I've ran into problems with her accepting my payment since my financial institution won't use Zelle anymore, which is all she will take. She refused Apple cash a couple weeks ago, so I moved out. Does she report this as income since she is earning a profit off of people, and thus should do a 1099? Thanks!

[Vanessa A]

No, you do not send a landlord of a residential property a 1099-Misc or any type of 1099.  

Yes, she does pay taxes on income from subletting an apartment.  If you feel she is fraudulently not claiming income on her taxes you can fill out form 3949A and send it to the IRS. 

[EvnThough]

Thanks very much for taking the time to reply. I'm still a bit perplexed as on the IRS website, I just found the following:  

"...File Form 1099-MISC, Miscellaneous Information, for each person in the course of your business to whom you have paid the following during the year.

• At least $600 in:
1. Rents (box 1);
2. Prizes and awards (box 3);
3. Other income payments (box 3);"

Isn't this saying I need to report it? 

[MaryK4]

You only issue a 1099-MISC if you paid rent in the course of your business, not for personal rents paid.  @LJStOnge 

[EvnThough]

Thank you… that’s what I suspected. I own home/reside in Texas, but have the rental in California for both employment/work as well as my side business as an independent California real estate broker. So in that case, I can probably 1099 a percentage of the rent, would you say?
Thanks so much for your input. 

[LeticiaF1]

As MaryK4 mentioned, you only need to issue a 1099-MISC if you paid rent during your business, not for personal rents paid. If the space you rented from her was a space for your business, you can give her a 1099. Otherwise, you won't be able to do it. See the following IRS link for more information:

Am I required to file a Form 1099 or other information return?