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Rental Property Tax Forms–What is Required?

Rental Property Tax FormsIssuing IRS Tax Forms: Are You Required to Issue a 1099?

Do You Know What Rental Property Tax Forms You Need to File?

The New Year brings with it tax time, and as a rental property owner you are responsible for ensuring tax laws are followed and IRS forms are issued. Do You Know What Rental Property Tax Forms You Need to File? One tax form is the1099-MISC which is used to report amounts of $600 or more paid to others for work performed related to the property. This IRS regulation applies to everyone who did some kind of work related to your property last year, as long as the company is not a corporation such as a professional property manager, wholesaler, attorney, or accountant.

Yes or No: As a client of Real Property Management, you must personally issue IRS form 1099-MISC to contractors.

Rental Property Tax Forms

 

Answer: Fortunately NO!

Because you are a client, your Real Property Management office takes care of this for you! While it is your legal responsibility to ensure IRS Rental Property Tax Formsregulations are followed, your Real Property Management office understands IRS regulations, and mails 1099-MISC forms as necessary on your behalf. These forms will be mailed to recipients, postmarked by February 1, 2016, and filed with the IRS by the appropriate due date.

People who performed work on your rental properties in 2015 are issued IRS form 1099-MISC if payment for their work was $600 or more.  Recipients of form 1099-MISC must report the amount as income on their tax return. Failure to report money paid to contractors on a 1099-MISC according to IRS regulations can result in penalties assessed by the IRS up to $250 for each form not filed.

In addition to contractors receiving 1099s, all Real Property Management owner clients will receive a 1099-MISC reporting the 2015 net gross income generated by the rental property.

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  1. Celia Bolton says:

    Wow! You scared me for a second with that 1099 for contractors. Glad y’all are doing it.

    1. We’ve got your back Celia 🙂

  2. Pete Eremija says:

    Do appreciate this posting and the awareness of the 1099 issuance/reporting requirements. Thanks for sharing this post.

  3. Dallas says:

    Thank you for sharing! this seems to be a very confusing topic with rental property and i’ll probably have to refer back to this again!

  4. Thanx for sharing the info.. Great article.

  5. James Irving says:

    Very informative article! Thanks for the info. Do you know if the $600 threshold will be changing for work done in 2016?