1099Misc for rents paid

[Jesse]

This question became burried on a different thread concerning the new legislation and issuance of 1099-Misc forms. For as long as I can remember I have issued form 1099-Misc to the landlord for office space rental. If this is not necessary, I feel guilty as I have charged business clients for the preparation of the 1099's,


Do you issue1099-Misc forms for rent paid for the use of real property, such as office space, in the amount of $600 or more by a business?

[Kram BergGold]

I believe you are correct

Although I never deal with this issue I believe you are correct. The new rules will add 1099 forms from landlord's to service providers. I just read in Kiplinger's that they do nto expect this new law to be adjusted or repealed. They do expect repeal of the law requiring 1099 form sto be sent to providers of products.

[joanmcq]

I've always done so when necessary. It is a business expense paid over $600. Landlords get 1099s for rents paid all the time. What they didn't have to do was issue them to contractors for repairs, etc.

[Gene V]

another article

on 1099-misc for landlords.

http://blog.pappastax.com/index.php/2010/11/12/new-1099-misc-rules-for-landlords/

[joanmcq]

I know this has not been highly discussed (and what really hasn't been discussed is the lack of basis step-up with the elimination of the estate tax, but that's another rant), but whether landlords are required to issue 1099s to handymen, etc, has long been discussed on message boards. I haven't done so in the past, but doing so is not going to be a huge problem.

As to why a business would not issue a 1099 to a commercial landlord....well, what do you think the 'rents' box is for?

[taxmom34]

i can't visualize all the people in the country who pay rent to a landlord issueing 1099s, landlords already get the 1099s from public housing subsidies and rental agents to report rental income. am i misunderstanding that part of it?

[Jesse]

If I understand correctly

i can't visualize all the people in the country who pay rent to a landlord issueing 1099s, landlords already get the 1099s from public housing subsidies and rental agents to report rental income. am i misunderstanding that part of it?

The only tenants that will need to issue a 1099 Misc to the landlord is if they are renting business property such as office space, but to the best of my knowledge that is not new, that is what confused me.

What will be new is that a person receiving rental income from real estate will be considered to be engaged in a trade or business...the business of renting property. So the landlord will need to issue 1099 Misc to anyone that is paid $600 or more for services just like other businesses are required.