What Property Managers Need to Know About Form 1099

Reposted by HomeQwest Realty Group, LLC

For property management companies, the month of January signals a time to prepare and issue year-end statements to their clients for tax preparation purposes. Consequently, each January the IRS requires that any taxpayers who have made payments in excess of $600 for services to vendors or workers that are not considered employees must prepare Form 1099 – Miscellaneous Income.

Property managers need to know about Form 1099.  

Property management companies are also federally required to file Form 1099 for their clients who have received in excess of $600 in rental income throughout the year. In addition, copies of this completed form must be provided to the IRS. The IRS compares the payments shown on the information returns with each recipient’s income tax return to determine whether the payments were reported as income and done so properly.

• The filing deadline for Form 1099 if filing by paper is February 28, 2014 (or March 31, 2014 if filing electronically).
• The IRS also requires that you file Form 1096 to identify all of the Form 1099s. (The filing deadline for Form 1096 is June 2, 2014.) Note: You don’t need to use the 1096 if you file electronically.

(Please consult your tax advisor. This information is provided courtesy of the IRS 2013 General Instructions page and is not intended to be considered tax or legal advice.)

Failure to issue a Form 1099 and file Form 1096 results in penalties and potential disallowances of deductions for those amounts paid. Thus it is imperative to comply with these filing requirements. 

Embrace technology and don’t let 1099s and bulky year-end report packages get you down. Use January to focus on the upcoming year and not the past.

Posted January 2, 2014 by Salvatore J. Friscia in Accounting & Bookkeeping, Tips & Advice

HomeQwest Realty Group, LLC   |   homeqwestrealty@gmail.com   |   O. 239.770.5429   |   http://homeqwest.com 

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