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I’ve never sent tax forms to the property management company. I’m unclear if I’m supposed to send them a 1099 since I paid them greater than $600 in management fees.

 
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3 Replies
DianeW777
Employee Tax Expert

I’ve never sent tax forms to the property management company. I’m unclear if I’m supposed to send them a 1099 since I paid them greater than $600 in management fees.

It depends. If they are a corporation then you are not required to file or send then 1099-NECs.  If the property management is not incorporated, and the entity is operated by an individual then Form 1099-NEC needs to be filed with the IRS and your property management company.

 

The word 'company' may imply an entity that is not a sole proprietorship.  Check with them to see what their entity structure actually is.

 

If you do find that you are required to file the form you can do that with TurboTax Desktop or TurboTax Premier Online.

 

If you are using TurboTax Online/Mobile you can sign into your return, select Tax Home on the left, then scroll down to Your Account, click the dropdown arrow and select 'Create W-2s and 1099s'. 

 

If you are using TurboTax Desktop select the Business tab, update beside Business Income and Expenses, edit beside your business, update beside Business Profile. Next select edit beside 'Has Employees' and you will be brought to the 'Pay Any Employees?' screen.  Here you can create W-2s. Likewise you can edit bedside 'Any 1099 Payments' to complete any required 1099s. 

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I’ve never sent tax forms to the property management company. I’m unclear if I’m supposed to send them a 1099 since I paid them greater than $600 in management fees.

Thank you! It is an LLC. Do I need to send them a 1099? If so, according to those links you instructed I follow I need to decide if I am a “sole proprietorship” or  “household employer only” or one of the other options. I don’t know what to choose. 

DaveF1006
Employee Tax Expert

I’ve never sent tax forms to the property management company. I’m unclear if I’m supposed to send them a 1099 since I paid them greater than $600 in management fees.

No. According to this source, LLC is considered a corporation so you do not need to send them a 1099 NEC. As far as deciding what type of a business entity you are, we need to know more details about you. What do you mean by 'household employer"?

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