1099 question

[ljwalters]

if you pay a management company to take care of a rental do you need to send them a 1099?

Linda

[Elrod]

I would say NO........................... Look at it as an expense, such as property taxes or utilities.

[Bart]

I would say yes. They are providing a service.

[Elrod]

So is the water company, electric company, roof repairman......I aint gonna send them a 1099.Would You?

[Hahn1040]

Generally the management company sends the owner the 1099 that reports gross rents collected from the tenants.

and they send a statement that shows the items paid through the owners account- such as repairs

and it shows the disbursements to the owner

[BulldogTom]

If the management company is not incorporated, and the payment is more than $600, I would say yes, you should. However, landlords are not required to send the 1099's since the repeal of the requirement, so I would say it is not required unless the rental activity rises to the level of a business.

Yes - I did take both positions. I am going to be a politician when I grow up.

Tom

Lodi, cA

[ljwalters]

Thanks I'm going with no.

Linda