topic Tax issues with 1099-Misc issued to a trust in Investors & landlords

Tax issues with 1099-Misc issued to a trust

ljinit — Tue, 21 Jul 2020 01:19:57 GMT

If properties are placed in a trust, should the rental management company issue a 1099-Misc to the trust or to the person reporting the income?

If a 1099-Misc is issued to a trust, could this create an obligation for a 1041?

Re: Tax issues with 1099-Misc issued to a trust

Anonymous_ — Tue, 21 Jul 2020 01:32:37 GMT

@ljinit wrote:
If a 1099-Misc is issued to a trust, could this create an obligation for a 1041?

Yes, assuming the income exceeds the threshold for filing (which is very low). This would also assume that the property management company was given the EIN of the trust.

Re: Tax issues with 1099-Misc issued to a trust

ljinit — Tue, 21 Jul 2020 01:33:43 GMT

Thanks, if the W-9 has the name of the trust but the social of the taxpayer, would this create any issue?

Re: Tax issues with 1099-Misc issued to a trust

Anonymous_ — Tue, 21 Jul 2020 01:54:07 GMT

@ljinit wrote:

Thanks, if the W-9 has the name of the trust but the social of the taxpayer, would this create any issue?

Is this a grantor trust? If so, and the trust uses the SSN of the grantor, then the trust is treated as a disregarded entity for federal income tax purposes and the income would be reported on the individual income tax return of the grantor.