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rag47546
New Member

Rented out our home in 2019 and used a service to locate a renter. Does this qualify as needing a 1099?

 
4 Replies
Bsch4477
Level 15

Rented out our home in 2019 and used a service to locate a renter. Does this qualify as needing a 1099?

As a general rule, you must issue a Form 1099-MISC to each person to whom you have paid at least $600 in services for your business. 

Anonymous
Not applicable

Rented out our home in 2019 and used a service to locate a renter. Does this qualify as needing a 1099?

here's from IRS 1099 instructions

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.

• Payments of rent to real estate agents or property
managers. However, the real estate agent or property
manager must use Form 1099-MISC to report the rent paid
over to the property owner. See Regulations sections
1.6041-3(d), 1.6041-1(e)(5), Example 5, and the instructions
for box 1.

 

so I would say no 1099 required. 

GiseleD
Expert Alumni

Rented out our home in 2019 and used a service to locate a renter. Does this qualify as needing a 1099?

It largely depends on the payee. If the service you used to find tenants was not a corporation (i.e., Bob's Tenant Finders, Inc.), it is recommended that you report the payment on a 1099-MISC. Generally, payments to a corporation (including a limited liability company [LLC] that is treated as a C or S corporation) do not need to be reported on a 1099-MISC.

 

However, according to the IRS’s guidance here, if, as part of your trade or business, you made the following type of payment, it is recommended that you report the payment on a 1099-MISC:

  • Services performed by independent contractors or others (not employees of your business) (Box 7)

Even though you are acting as a landlord, it is important to file a 1099-MISC if you are looking to take the (up to) 20% Qualified Business Income (QBI) deduction. This deduction is available to individuals and owners who seek to claim the deduction with respect to a rental real estate enterprise. A rental real estate enterprise will be treated as a trade or business for purposes of the QBI deduction if certain criteria are met. Here is some more information from the IRS on the QBI deduction.

 

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Carl
Level 15

Rented out our home in 2019 and used a service to locate a renter. Does this qualify as needing a 1099?

As a rental property owner, *YOU* are not required to issue a 1099-MISC for anything. However, since you paid a management company to manage the property for you, the management company may (or may not) be required to issue *YOU* a 1099-MISC showing the rent that was paid to you.

The only way you would be required to issue a 1099-MISC is if you paid an *INDIVIDUAL* more than $600 for something in 2019. If you paid a business, then no 1099-MISC is required.

 

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