topic 1099-NEC and 1099-MISC for rental property in Investors & landlords

1099-NEC and 1099-MISC for rental property

anilj — Sun, 14 Mar 2021 18:34:10 GMT

I purchased a home last year for rental.

I am bit confused with the 1099-NEC/MISC filing requirement. I think this is not required because my rental is not a "trade or business" and thus am not taking a QBI on it.

Is that a correct assumption? What is really considered a trade or business?

This is my one and only single family home rental. I bought it to live at but instead am now have it as a rental for 2020 tax year.

Re: 1099-NEC and 1099-MISC for rental property

anilj — Sun, 14 Mar 2021 18:46:04 GMT

Answering my own question...

Seems like the answer is NO to QBI:

https://ttlc.intuit.com/community/credits-and-deductions/help/can-i-get-the-qbi-deduction-on-rental-income/00/27538

"Passive rental activities that are not considered a trade or business

For example, a single-family dwelling rented out for a year or more in which there is little or no interaction between the landlord and the tenants other than periodically collecting rent and the occasional repair"

Re: 1099-NEC and 1099-MISC for rental property

npierson7 — Sun, 14 Mar 2021 18:52:12 GMT

You are not receiving Qualified Business Income Deduction because rental properties are usually treated as passive activities, and passive activities are excluded from the definition of a qualified trade or business.