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Old 01-12-2016, 03:50 PM
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Filing a 1099 MISC

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. 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?



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Old 01-12-2016, 05:24 PM
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Originally Posted by notacpa123 View Post


#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.



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Old 01-12-2016, 06:46 PM
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Question

It said I have a reply, but I don't see one. If the references below, they do not answer my question. Thanks.


I found the reply.

Thanks. Its nice to know I am on the right track!!


Last edited by notacpa123 : 01-12-2016 at 08:39 PM. Reason: added comment


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Old 01-13-2016, 06:45 AM
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So the income goes on a schedule E.

Am i required to send out 1099 Misc to vendors over $600 even though he has a social security number and not a fed ID number? This used to be the requirement. I want to make sure it has not changed.. I called the IRS. They told me to look it up; I have spent too many hour researching with no answer found.



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Old 01-14-2016, 04:21 PM
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Originally Posted by notacpa123 View Post


#1;So the income goes on a schedule E.





#2;Am i required to send out 1099 Misc to vendors over $600 even though he has a social security number and not a fed ID number? This used to be the requirement. I want to make sure it has not changed.. I called the IRS. They told me to look it up; I have spent too many hour researching with no answer found.
#1;correct; you do not report it on Sch C of 1040 but need to report it on Sch E of 1040.

#2; Whether or not your vendor has only SSN#, it does not matter. You don't need to issue 1099s for payments made for personal purposes. You are required to issue 1099 MISC reports only for payments you made in the course of your trade or business As said, you must issue a Form 1099-MISC to your vendor , each vendor, to whom you have paid at least $600 in rents, services including parts and materials or other payments. One of the smartest procedures a you can implement is to request a W-9 from your vendor you expect to pay more than $600 before you pay them and keep the form with you. don't forget you have to compile all of your 1099s and submit them to the IRS with a 1096 by Mar 31 if you file it it with iRS electronically. ; you are required to issue and essentially mail out all of your Form 1099s to your vendors by Jan 31 of 2016 for 2015 . Then you have to send in the transmittal Form 1096 to the IRS before Feb 28. For those of you that 'outsource' this service, your EA/CPA with the proper system can actually submit the 1096 and stack of 1099s electronically by Mar 31. Don't forget as well, that depending on state law, you may also have to file the 1099-MISC with youir home state



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Old 01-14-2016, 07:55 PM
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Originally Posted by Wnhough View Post
#1;correct; you do not report it on Sch C of 1040 but need to report it on Sch E of 1040.

#2; Whether or not your vendor has only SSN#, it does not matter. You don't need to issue 1099s for payments made for personal purposes. You are required to issue 1099 MISC reports only for payments you made in the course of your trade or business As said, you must issue a Form 1099-MISC to your vendor , each vendor, to whom you have paid at least $600 in rents, services including parts and materials or other payments. One of the smartest procedures a you can implement is to request a W-9 from your vendor you expect to pay more than $600 before you pay them and keep the form with you. don't forget you have to compile all of your 1099s and submit them to the IRS with a 1096 by Mar 31 if you file it it with iRS electronically. ; you are required to issue and essentially mail out all of your Form 1099s to your vendors by Jan 31 of 2016 for 2015 . Then you have to send in the transmittal Form 1096 to the IRS before Feb 28. For those of you that 'outsource' this service, your EA/CPA with the proper system can actually submit the 1096 and stack of 1099s electronically by Mar 31. Don't forget as well, that depending on state law, you may also have to file the 1099-MISC with youir home state
if your vendor is an S -- corp, C corp , then you do not need to send out 1099 toyour vendor.



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