Another 1099 MISC question

[robt20]

My wife & I moved from Colorado to another state in Apr 2019 and are renting out our home in Colorado to a single family.   TurboTax Premier is telling me that I may need to fill out a 1099MISC for payments of $600+ that I made to our property management company and any single contractor, and that I should have issued them by Jan 31.   But in reading the support blogs here, it appears that may I may not have to do that.  

Will someone clarify this confusing issue ?

Thanks

[JohnB5677 · Accepted solution]

You must prepare a FORM 1099-MISC to people you had "business dealings" with  that you paid $600 or more in a year.

The IRS does have Exceptions.

Some payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include all of the following.

• Generally, payments to a corporation (including a limited liability company (LLC) that is treated as a C or S corporation). However, see Reportable payments to corporations, later.
• Payments for merchandise
• Telegrams, telephone, freight, storage, and similar items
• Payments of rent to real estate agents or property managers.

IRS 1099-MISC

[robt20]

Thanks.  Since I've missed the Jan 31 due date for my recipients, does that mean I'm unable to deduct my $600+ single expenses?

[DaveF1006]

No it doesn't mean you still can't claim the expenses but you should still issue them a 1099 to avoid any possible penalties from the IRS. Please read this Turbo Tax link for further details especially the article within the link entitled "Penalties for not issuing Form 1099-MISC".

[robt20]

Thanks very much!

[Carl]

@JohnB5677 's response really isn't as clear as it should be. Here's the bottom line.

Due to legislation that was "repealed" in/about 2012, a landlord that is not a real estate professional (you are not) is not required to issue a 1099-MISC. Period. End of Story.

However, now-a-days you might want to issue one to support any claim you may have for the QBI deduction on the rental income. Being that you only have 1 rental property, I have no doubt that you do not qualify for the QBI deduction just based on the fact you did not spend a minimum of 250 hours in 2019 "directly involved" in your one rental property. So no need to waste your time with a 1099-MISC.

How do I know that? Because I myself have 3 rentals and I can't come anywhere close to even 100 hours in a year with all three properties combined. I even had one rental go empty in 2019 and spent a full 5-day week turning it around for the next renter. That's a mere 40 hours at best. But realistically it was less than 35 hours.

[robt20]

Thank you.  

[ruthscart]

I have a 1099 which was given to me from a company how do I start

[ruthscart]

I got a 1099 from a company I do not  pay anyone anything how do I start my taxes

[ColeenD3]

@ruthscart

You will need the Self-Employed program to include your 1099-Misc income.

The program will walk you through the entire process, beginning with your name. When asked if you have Self-employment income, answer, "yes".