1099 Misc

[S T]

Issuing 1099 Misc for Rents? commercial property not residential,
Still under old rules not the new rules that might be proposed or placed into effect for 2011 moving forward.

Have a schedule C tenant - should we issue a 1099 Misc to the Landlord at year end for rents paid? and if so, what if the Landlord refuses to complete the W-9 form, or if the tenant knows for a fact according to the Lease terms that the landlord is a LLC or a Corp?

My feeling is that is always better to issue the forms if the proper information can obtained, however, what if we can't obtain "any" information from Landlord and the tenant just "does not know". Note again this is for current and prior regulations, not what might be happening over the next year or two.

Thanks,

[Gretel]

Sure requires 1099. If necessary info cannot be obtained I would send two letters with return receipt, maybe 4 weeks apart and then write in the empty space for FEIN "2nd notice sent".

I have done that and never heard anything back.

As far as new rules are concerned, I strongly believe they will be remodeled. By the way, if my memory is still good, it will only start in 2012.

[S T]

Yes I do believe it is 2012

Gretel,
Thanks, I do believe it is 2012 also, just too lazy to look it up.

Under current rules, isn't there an exemption if the Landlord is a Corp, or are all types of entities and Property Mgrs and sub leases to receive?

Sandy

[Uncle Sam]

1099-misc

The only way I see this new law working - is if ALL business entities, including landlords, were to publicly disclose their EI# on their business stationery - bills, statements, contracts, leases, etc.

I can't imagine every business completing a Form W-9 for every single business customer.

[Burke]

Issuing 1099 Misc for Rents? commercial property not residential,
Still under old rules not the new rules that might be proposed or placed into effect for 2011 moving forward.Have a schedule C tenant - should we issue a 1099 Misc to the Landlord at year end for rents paid? and if so, what if the Landlord refuses to complete the W-9 form, or if the tenant knows for a fact according to the Lease terms that the landlord is a LLC or a Corp?My feeling is that is always better to issue the forms if the proper information can obtained, however, what if we can't obtain "any" information from Landlord and the tenant just "does not know". Note again this is for current and prior regulations, not what might be happening over the next year or two. Thanks,

Most commercial properties are handled through a property management agency or real estate firms. No 1099 is required to be issued by the tenant if rents are paid via an agent/agency. That agency gives each landlord/owner a 1099 at the end of the year for all rents received from all tenants. This activity would only be required if the tenant paid rents directly to the building owner.

[ChEAr$]

The only way I see this new law working - is if ALL business entities, including landlords, were to publicly disclose their EI# on their business stationery - bills, statements, contracts, leases, etc.

I can't imagine every business completing a Form W-9 for every single business customer.

Except, of course, some kind of notification will have be given to the lessee , or payor,
that recipient is not subject to backup withholding.

[Gretel]

Under current rules, isn't there an exemption if the Landlord is a Corp, or are all types of entities and Property Mgrs and sub leases to receive?

Sandy, just looked at your original post again. Yes, exemption for Corp under current rules but not for LLC unless taxes as Corp (not sure about later part of statement though)

[Burke]

See my reply above re: property mgrs.