Vacation Rental + 1099-Misc

[LB641]

Need some information from Tax Experts, and those that also own a vacation home, they rent out when not used. TT continues to ask us if we need to issue a 1099-Misc for work done on the home/property. In researching this ongoing and seemingly unresolved issue, I have been told that the requirement was rescinded shortly after being instituted. I have also been told that it does not apply to those of us that simply have one vacation home, that they rent out short term when they are not using it. I have also been told that as long as the people doing the work are not "employees", no 1099-Misc is required. But I have also been told we need to issue 1099's for any work over $600. No one seems to have an answer with documentation to support. And for some reason TT continues to ask the question, forcing an answer from us. Does anyone have solid valid supported information and or documentation on this? We are just a retired couple with one vacation home that is rented out short term when we are not using it. Do I issue 1099-Misc to Duke energy, Frontier Communications, Amerigas, Walmart, and others who do maintenance and repairs, just because we have bills that exceed $600?

[AlanT222]

The requirement described in the 2011 instructions for persons receiving rental income from real estate to report payments for certain rental property expenses on Form 1099-MISC was repealed by Congress. You do not have to report those payments on Form 1099-MISC

The documentation you seek is in this bill H.R.4.  

[LB641]

@LinaJ2020

Why does TT ask this each year?  If repealed, why does TT ask it and then place it on the IRS form?

Good to know, but when one inquires, one still gets answers that are all over - from yes you do, to no you do not.  thanks

[AnnetteB6]

The question is still asked and reported on the tax form because the requirement was not repealed in all cases.  If the rental property is part of a trade or business, then the requirement to issue 1099-MISC still exists.

@LB641

[LB641]

@AnnetteB6 

@AlanT222

"...If the rental property is part of a trade or business...".

 I think this is where the issue gets confusing. If a retired couple owns a vacation home, and then do short term rentals when they are not using it, who decides if it is a trade or business? Thus the dilemma of do we need to issue 1099-Misc, or not?

[JohnB5677]

Based on the IRS instructions for: Form 1099-MISC

Trade or business reporting only. Report on Form 1099-MISC only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit.

File Form 1099-MISC, Miscellaneous Income, for each person in the course of your business to whom you have paid the following during the year:

• At least $10 in royalties (see the instructions for box 2) or broker payments in lieu of dividends or tax-exempt interest (see the instructions for box 8).

• At least $600 in:

1. Rents (box 1);

2. Prizes and awards (box 3);

3. Other income payments (box 3);

4. Generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3);

5. Any fishing boat proceeds (box 5);

6. Medical and health care payments (box 6);

7. Crop insurance proceeds (box 9);

8. Payments to an attorney (box 10) (see Payments to attorneys, later);

9. Section 409A deferrals (box 12); or

10. Nonqualified deferred compensation (box 14).