Our owner clients and vendors will be receiving their 1099's this month as required by the IRS. If any client has a question they should direct it to Kathy Garcia at kgarcia@HomePointe.com or call her at 916-429-1205 x 113.
We report the information to the IRS in late February.
Hi Bob: So forgive me for asking what may look like a stupid question, but why do you have to give 1099s to landlords? Obviously, I don't handle rentals or I'd know the answer to that question. :)
I'm still having difficulty believing that tax time is coming so rapidly! I'm also curious about the question that Elizabeth brings up about 1099s for landlords?
The IRS requires that property managers report income collected on behalf of our clients. Each client must supply their tax identification number, more commonly known as a social security number, and we report the gross collections on a 1099 Misc. to the IRS.
The owner then completes a Schedule E on their tax return showing the income and expenses. The IRS is cross checking to make sure the income we report shows up on the Schedule E.
Some think it an intrusion since if an owner manages the property themself, no one reports the income to the IRS other than the owner on their Schedule E.
To add insult to this, California is now requiring that out of state clients have 7% (or more for out of country) of income withheld by property managers unless a waiver is approved by the FTB. More intrusion.
Thanks for that explanation. I had no idea, and now I have learned something valuable from you!
Tom, Yes some do this to have a record of your social security number and address on an IRS form. They then send you a 1099 at year end as stated above.
Comments(6)