Just to clarify my understanding of reporting rents paid on form 1099-Misc. If the lessor is a Corp then the person renting a warehouse or building from the lessor does not have to furnish a 1099-Misc. Would you only furnish the lessor a 1099-Misc if the lessor is an individual?
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Often real estate is owned as an LLC or LLP, then you also need to send the 1099. -
1099
Corporations do not get 1099s except if it is a lawyer and some other professionals. An LLC can be a corporation, partnership or Schecule C. How it is taxed will determine its 1099 status. Partnerships and Soleproprietors get a 1099.This post is for discussion purposes only and should be verified with other sources before actual use.
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Thanks
for the responseComment
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How is the company issuing the 1099 to know that an LLC is taxed as a corporation and the 1099 is not to be issued? I believe the IR Code says "corporation" as in a state organized entity and "taxed as a corporation" is not the same thing. I would issue the 1099 to all LLC's.Originally posted by BOB W View PostComment
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I happen.....
..... to disagree, but to each their own.This post is for discussion purposes only and should be verified with other sources before actual use.
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I just dealed with this issue myself and was thinking the same as you do. On second thought, I think, that 1099 are federal requirements and with selecting to be taxes as a corporation should also come the benefit in regards to 1099's. At least it is a good argument if challenged.Originally posted by OldJack View PostComment
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