Originally Posted by notacpa123
#1;This person rents out property, but it's not a business. He will file the income on a schedule C. I know that companies with federal ID #'s have to file 1099's and the rules relating to that.
#2;However, what about a person who will file a schedule C with his social security number? Does that person have to send 1099 MISC for the same things over $600? Do the same rules apply?
#1;You mean the guy reports his rental income on SCh C of 1040 or he files Sch C of 1040 to report other active nonrental income? As you know, in general, rental income is passive income, however, as a real estate dealer , rental income is active income that needs to be reported o n Sch C of 1040 instead of Sch E of 1040.remember; if the guydoesn't meet real estate professional criteria and the guy doesn't provide services, then, the rental income cannot be reported on a Sch C , but he needs to 게댃 it on Sch E of 1040. Asfaras I know,The IRS scrutinizes returns claiming real estate professional very closely. In order to qualify as a real estate professional, a taxpayer must satisfy both of the following tests: 1.More than 50% of the personal services performed in trades or businesses by the taxpayer during such tax year are performed in real property trades or businesses in which the taxpayer materially participates.
2.the tp needs to perform more than 750 hours of services during the tax year in real property trades or businesses in which the taxpayer materially participates. Please read below.
#2;It depends; Tenants need to only issue landlords 1099s if rent payments / transactions relate in some way to their business or trade, though.i mean say, Only tenants in commercial leases ,i.e., office b/d, shopping center tenants, not regular residential pty.must provide IRS Form 1099 to their landlords. Only Commercial lease tenants paying $600 or more to landlords must issue landlords 1099s when their transactions meet cost and business activity minimums. Tenants must provide 1099s except when rent payments are made to real estate agents. They need to list rent paid to their landlords in Box 1 of the 1099-MISC. commercial tenants also need to receive an IRS Form W-9 to obtain landlord's address, Social Security number or tax identification number and enter it all into their landlords? 1099 as well.