topic Rental property 1099 for HOA payment in Get your taxes done using TurboTax

Rental property 1099 for HOA payment

shank108 — Sun, 26 Jan 2025 00:38:41 GMT

We own a townhouse which we rent out through the year. We are part of a HOA that manages ~250 townhomes within the complex. We pay HOA dues on a monthly basis that are used to manage common areas of the property. Our total annual HOA dues paid are greater than $600. The HOA employs a property management firm to manage the HOA due collections, etc. As a rental home owner (business) do I need to send the property management firm and/or the HOA a 1099 form for the HOA dues paid?

Additionally, I read that the IRS has a phase-in reporting requirements of $5000 (and not $600) for 2024. Is this true? If true, how does this change our actions for the above question.

Re: Rental property 1099 for HOA payment

Bsch4477 — Sun, 26 Jan 2025 00:57:52 GMT

You don’t have to send a 1099 to a corporation. The threshold of $5,000 is for form 1099K.

Re: Rental property 1099 for HOA payment

shank108 — Sun, 26 Jan 2025 01:06:44 GMT

Thank you. Does it mean I would need to generate a 1099 in 2025 when the threshold becomes $600?

What if the HOA is a non-profit? Does it change what I do in 2024 or 2025?

Re: Rental property 1099 for HOA payment

Bsch4477 — Sun, 26 Jan 2025 01:14:01 GMT

Again, the threshold you refer to is for a 1099K so it doesn’t apply to you. An HOA may be non profit but is not tax exempt so that doesn’t change anything for you.

Re: Rental property 1099 for HOA payment

shank108 — Sun, 26 Jan 2025 01:22:11 GMT

Thank you @Bsch4477. Very helpful!