Why is my property manager sending me a 1099 form? This is a question we get from time to time and while not everyone agrees on the same answer it is, in fact, a necessary evil. At least for now.
Rental income reporting.
We know that no one really likes “tax time” and certainly not having to claim more income than they have to because it means owing the IRS more at times. Even so, it is income that must be reported somehow, to someone right? Oh, we wish it was that simple too but in the years spanning from 2010 and 2012, the verbiage used by Congress has made this issue even more controversial. Owning a rental property is considered a business in the eyes of the IRS. Or is it? This is the line that has yet to 100% be defined by Congress.
What is a 1099 MISC form?
To report rental income we provide our clients with a 1099 MISC form provided by the IRS. The purpose of this form is to report any rental income in excess of $600 in a year. However, it is still up for debate whether owning a rental is considered a “business” because owning a business implies that you are doing something for profit. What if this has no profit just yet? Well, there lays the gray line. Forbes published a great article written by a nationally recognized tax professional that explains in-depth the confusion behind the argument about reporting rental income. You can read the full article here.
In the end, we, as a business are required to report the rental income we collect on a client’s behalf. We recommend talking with your accountant about how this form is used.
Have questions about our services or want to learn more about how to own an investment with LESS HASSLE. MORE HAPPY? Visit our website at www.RentWisePM.com or give us a call at 208-949-3083.
What is a reasonable accommodation request? By definition, under the Fair Housing Act, the housing provider is responsible for the costs associated with a reasonable accommodation unless it is an undue financial and administrative burden, while the tenant or someone acting on the tenant’s behalf, is responsible for costs associated with a reasonable modification.
We want to wish you a very Merry Christmas and the Happiest New Year yet. As we reflect on how lucky we are to do what we do we wanted to share our immense gratitude for your business and your trust. We believe that integrity, honesty, and respect are the core values in any relationship and we strive to meet those expectations at every opportunity we get. We know that when it comes to property management you have choices. We appreciate you choosing us to serve you which allows us in turn to serve our community. We hope this holiday season is filled with laughter and love and we are excited about what’s to come in 2020!
I don’t know about you but holiday shopping always kind of sneaks up on me and then it’s time to either jump online for some amazon prime shopping or head to the dreaded storefronts for that perfect gift. But what if holiday shopping had an extra bonus of giving back! I mean why not? You are most likely going to give gifts, what if they had an even bigger purpose? That seems like a win-win to me!
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