I used a rental management company last year. What should I issue to and receive from the rental company?

[superlyc]

Hi, 

I used a rental management company last year. I heard I should issue 1099-NEC to the company and receive a 1099-Misc from the company. Is this correct? I have not heard thing from them.  What else do I need to do?

Thank you

[ThomasM125]

The instructions for form 1099-NEC say that you are required to issue a form 1099-NEC to anyone not paid as an employee who provided services in the course of your business that totalled more than $600 for the year, and specifically to a lawyer. It is intended for small business owers as opposed to large companies. You are technically in business if you own a rental property, so the safe thing to do would be to file the 1099-NEC form.

The managemet company should issue you a form 1099-MISC to report your rental income, as the reporting requirements for that form are similar to that of the form 1099-NEC.

[superlyc]

Thanks for your answer.

However, I am still not clear with a few things after reading online.
1) It seems that I only need to file 1099-NEC, if my rental property is considered as a business rather than an investment. Is this correct?
2) Most of places say that 1099-NEC need to be filed if I pay individual contractors such as handyman. What about property management company?
3) Who should file 1099-NEC, me or the property management company? I have read both on different websites. So confused.

Thank you.

[PattiF]

The property management company will send you a 1099-MISC for total gross rental receipts as @ThomasM125 mentioned.

The property management company will send 1099-NEC's to the contractors who performed repairs on your property. The property management company is hired by you to take care of the repairs and maintenance on your property. They will send the forms, and there is no need for you to do that. 

The property management company will send you a listing of all of the expenses that were paid on your behalf. This can be used when adding expenses on the Schedule E for the rental.

For more reading see this discussion in TurboTax community