IRS Form 1099 for Rental Activity

November 20th, 2013

As you may know, the IRS has suggested many changes regarding the requirements to file IRS Form 1099.  Since it has been somewhat confusing, we are explaining the current rule on IRS Form 1099.

Generally, any trade or business (including rental business) that makes payments in the course of that trade or business for interest, rent, services, payments to attorneys, etc. aggregating $600 or more for the year to a single payee is required to report the payments to the IRS and to the recipient of the payments by filing IRS Form 1099 and the related IRS Form 1096.  This rule applies to payments made to individuals, partnerships and LLCs but this reporting requirement generally does not apply to payments to corporations.  However, the 1099 reporting requirements do apply to payments made to corporations for attorneys’ fees and to amounts paid to corporations providing medical or health care services.

In particular, if you own a rental property of any type, you must send a 1099 to all non-corporate providers of services, such as landscapers, repair companies, maintenance providers, property managers, etc.

If you have any questions regarding the need to prepare Form 1099 or if you need our assistance in preparing Form 1099, please call.  A copy of Form 1099 is due to the IRS by February 28, 2013.

Tucson CPA and Tax Firm, Flower Rieger and Associates, P.L.L.C.  offers tax preparation for businesses and individuals.  The CPAs of Flowers Rieger are also offers aggressive tax strategies and planning, accounting and bookkeeping, financial statement preparation, estate and trust tax preparation and more CPA services.


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