Comments on: Ask the taxgirl: 1099 for Rent

By: mary

mary — Fri, 10 Dec 2010 01:12:25 +0000

Can I 1099 a company we pay rent to who is a Corp; INC or Medical with INC and CORP.

If not please direct me. Thanks

By: MJ

MJ — Thu, 25 Feb 2010 05:35:34 +0000

Did you answer Mari? Because I have the very same question. My sister is a booking agent and her highly paid professional accountant filled out her forms once putting the payments in Box 7 of the 1099. So, later years, she did the same. But one individual came back and said it needed to be in Box 1. Should 1099′s be reissued using Box 1?

By: Mari

Mari — Thu, 04 Feb 2010 17:24:02 +0000

Our company pays rent for clients who are back in their rent payments. Usually this is one shot deal to the landlords but there are multiple clients and landlords (amount over $600). Do I use box 1 or box 7? Also what happens if you accidentially issued a 1099 to vendor for rent on box 7? Thanks

By: Kelly

Kelly — Tue, 02 Feb 2010 20:42:36 +0000

Machine rentals, etc., apply, too. So the answer is yes.

By: david

david — Tue, 02 Feb 2010 18:57:26 +0000

Does equipment rental apply under the RENTS classification or is this real property only?

Thanks for your help

By: Last MInute Lucy

Last MInute Lucy — Fri, 29 Jan 2010 17:56:36 +0000

Hi Taxgirl! Just wondering how to treat payments to the owner of a web domain? We pay monthly payments to the owner of a URL for use by my company. I am unsure how these payments should be reported on the 1099 form. Would the payments be considered as rent and reported in box 1? Or can I report them in box 7 on the 1099 form? Thank you for your help!

By: tk

tk — Thu, 10 Sep 2009 19:38:18 +0000

If the Company is paying a landlord for executive housing for those executives that do not live in the corporate city, does the company issue the 1099-Misc to the landlord (who is not a corp or a real estate agent)? Does the answer to this question depend on whether the company is incurring this expense or whether they are then taxing this benefit to the executive?

Thanks!
-accountant in Tempe

By: SUE WONG

SUE WONG — Fri, 28 Aug 2009 15:37:15 +0000

The compnay paid the rent to commercial property owner who is also the S corp owner and employee. Does the company need to issue 1099 to the owner(employee)?? The owner did report the rental income in 1040 without the 1099.
Thank you very much for the help

By: Kelly

Kelly — Thu, 12 Feb 2009 02:26:23 +0000

I received another question re rents and LLCs. I didn’t want to create a separate post for it so I thought I’d tack it on here…

An LLC can be a partnership, corporation or single member LLC (disregarded entity). LLCs which are corporations would not receive a form 1099-MISC for rents. LLCs which are taxed as a partnership or as a disregarded entity may be subject to a form 1099-MISC. Check the form W-9 if you’re not sure. If you don’t have one and you’re concerned, then issue the 1099-MISC. It can’t hurt.

Remember, however, that this applies to commercial/business rentals only. I keep getting questions about personal/residential rentals – no, no, no. You don’t need to issue a form 1099 for those.

By: Kelly

Kelly — Thu, 12 Feb 2009 02:01:11 +0000

I’ve received a couple of follow-up questions to this post so I wanted to post a bit more…

Payments made for rental payments are not reportable on a form 1099-MISC if paid to a corporation or to a real estate agent. You may need to report rental payments made to an individual or partnership. However, a PC or other corporation in the name of an individual, as above, is not considered an individual for this purposes.

You do not need to report personal/residential rental payments (ever) on a form 1099-MISC. Only those payments associated with your trade or business are reportable.