I rent my home for four months out of the year; traveling during that rental period. Otherwise I live in the home. I have a rental management company that manages the property during the rental period, but is largely uninvolved when I live there. During the time that I live in my home, I personally make repairs, pay for contractors to do monthly maintenance, pay contractors for repairs, etc. I have one contractor who is a sole proprieter and it appears that I need to issue him a 1099-NEC. I can see in the TT Interview where it asks if you pay anone more than $600 and whether or not you reported that payment on a 1099-NEC. However, I do not see anywhere in TT where I can file a 1099-NEC. I tried filling out the 1099-NEC Worksheet, but that appears to link to a schedule C, not a Schedule E. Spent a couple of hours trying to research the forums. No luck. Any help or guidance appreciated.
@finethreads wrote:
During the time that I live in my home, I personally make repairs, pay for contractors to do monthly maintenance, pay contractors for repairs, etc.....
Form 1099-NEC is for trade or business reporting only.
See https://www.irs.gov/instructions/i1099mec#en_US_2022_publink100019786
I qualify for the Qualified Business Income (QBI) deduction, which begs the question: Am I running a business?”. That is what concerned me.
I eventually found an IRS safe harbor notification that allows for QBI on rental enterprises.
https://www.pdr-cpa.com/qbi-safe-harbor-rule-real-estate/