The deadline to file 1099-MISC tax forms with the IRS and send them to recipients is January 31, 2018.
Property managers are required to file 1099s for any service provider or property owner whom you paid more than $600 during 2017. Failure to file 1099s results in high penalty fines so it is important to understand your tax obligations for your rental business.
You must mail a copy of the 1099-MISC form to the recipient and submit a copy to the IRS. Some states will also require you to file 1099 tax form with your state’s tax agency.
How to file 1099-MISC Tax Forms
1099s can be mailed or electronically filed with the IRS. If a business is submitting more than 250 1099 forms, the IRS requires you to file electronically.
Rentec Direct provides a 1099 Tax Assistant that generates the necessary reports to easily complete your tax forms, and options to file electronically with the IRSdirectly and send copies to your recipients through the software.
1099 Tax Assistant Report
The 1099 Tax Assistant report gives landlords and property managers the necessary information to easily compile 1099 tax forms for the IRS, vendors, and owners.
Find the 1099 Tax Assistant Report: You can access the Tax Assistant Report under Financial Reports in the Reports tab of you Software.
E-file 1099 Tax Forms Through Rentec Direct
To further assist landlords and property managers, Rentec Direct provides electronic filing services for our clients. There’s no need to re-enter data or pay your tax adviser to file these forms on your behalf because it’s very simple and extremely cost effective to file them electronically through Rentec Direct.
Rentec Direct provides full e-file functionality with the IRS as well as mail out, as necessary, and paper copies to the recipients and state agencies through a partnership with Nelco, tax filing professionals.
Our friends at Nelco hosted a webinar this year for our Rentec Direct clients to demonstrate How Easy It Is to File 1099s Through Rentec Direct.
To discover how to File 1099-MISC Tax Forms with Rentec Direct visit our Knowledge Base Article – 1099 MISC – Federal E-Filing and Print Options
This year, Nelco is offering one free federal filing & recipient reporting service with code RENTEC17.
1099 Tax Assistant and E-File Features
The 1099 Tax Assistant Report in Rentec’s software appropriately shows incomes and expenses per property. This is the same data that will be used for populating the e-filing system in the program. The 1099 Tax Assistant Report and the 1099 e-filing feature will utilize all the owner distributions and vendor payments entered throughout the year, so there’s no need for double entry.
Even if you don’t use Rentec’s automated e-file features, the 1099 Tax Assistant Report is a vital report to give your CPA or use if you manually filling your 1099 returns. It provides the necessary information to quickly and accurately complete the tax forms.
Who gets a 1099-MISC form?
- Owners – A property manager must use Form 1099-MISC to report rent paid over to the property owner in excess of $600 during the tax year.
- Independent Contractors – A property manager must use Form 1099-MISC to report funds in excess of $600 paid to any unincorporated vendor or service provider including:
- repair men
- Attorney fees to handle an eviction or collect unpaid rent (even if the legal services were provided by a corporation).
Basically, you must file a 1099-MISC form for anyone you paid more than $600 to in the course of a year that is NOT a corporation.
Set Up Vendors for 1099 Tax Reporting
In order to make this report the most useful, we recommend users consider the following tips.
Set Up Vendors
Be sure to visit Settings, Setup Vendors and have all your vendors defined in the system with complete address and tax id information. This step is also necessary for any owners you provide distributions to (ie pay rental income to). For individuals this is their social security number (SSN), and for businesses it’s their employer identification number (EIN).
Request a W-9 form from any vendor or owner for whom you don’t already have one on file. If the system is unable to match a qualified expense to a vendor or owner it will provide an option to link that payee to an owner or vendor for your convenience.