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When and How Must Landlord’s Create 1099-NEC?

I own two rental houses, pay for all sorts of expenses that exceed $600/yr.  E.g. lawn service - $100/month;  $1,200 per yr.  Another example would be a painter I paid $1,500 during my last vacancy.  I pay both in cash or check, get hand written receipts.  Do I really need to generate a 1099-NEC for these guys? I don’t have an SS# or TIN for either (probably don't want to give it to me). Does every landlord generate this 1099 for every person they pay over $600/yr?

 

Related TurboTax question: when entering Rental (Sched E) info, one question is “Did you Pay Anyone $600 or More…”.  I click “Yes, I paid for work …”.  Then I click “No, I did not issue 1099’s”.  Then Continue.  So far, seems OK (those responses are factual).  But have I set off an audit alarm?

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1 Reply

When and How Must Landlord’s Create 1099-NEC?


@FlyFisher99 wrote:

Does every landlord generate this 1099 for every person they pay over $600/yr?


Only if your rental real estate activity rises to the level of a trade or business (which is not typically the case) or if you are interested in getting the QBI deduction.

 

See https://ttlc.intuit.com/community/credits-and-deductions/help/can-i-get-the-qbi-deduction-on-rental-...

 

Other than the foregoing, 1099 reporting is not required.

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