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megy_ruse
New Member

Do I need to issue 1099 Misc for a tenant provided repairs in exchange for rent?

I am a landlord. I have provided one of my tenants with free housing in exchange for rent. I will report the months without rent as "rent received" and same amount as "Repairs" on my Schedule E. My question is: Should I also provide 1099Misc for the amount calculated as repairs? There is no actual cash received, just exchange for rent?

3 Replies
Marketstar
Level 7

Do I need to issue 1099 Misc for a tenant provided repairs in exchange for rent?

No, you are not required to provide a 1099-MISC for work performed on your rental property if you are not in the business of renting properties.  

 See Small Landlords Not Required To File Form 1099

http://www.auburnmainecpa.com/1099s-required-small-landlords/

megy_ruse
New Member

Do I need to issue 1099 Misc for a tenant provided repairs in exchange for rent?

I would like to add to the same question.

What happens with barter rent payments if there is LLC involved and the form 1065?

Now, the rental is business.

Do I need to mail 1099 MISC for repairs in exchange for rent (no cash involved)?

 

Thank you!

AmyC
Expert Alumni

Do I need to issue 1099 Misc for a tenant provided repairs in exchange for rent?

Yes, a 1099-NEC.  Barter is the exchange of goods or services without the payment of money. When barter occurs in the course of a trade or business, the following rules apply.

  • The fair market value of goods and services received must be included in business income in the year of receipt and is subject to self-employment tax.
  • Associated expenses are deductible as business expenses.
  • Bartering income is subject to 1099 reporting requirements. 
  • Barter exchanges report trades on Form 1099-B,Proceeds From Broker and Barter Exchange Transactions.  Topic No. 420 Bartering Income | Internal Revenue Service

You did not use a barter exchange service so you need only file the 1099-NEC.

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