Does a property management company have to issue a 1099 for rents it collects on behalf of a corporation or retirement fund?

asked 15 Feb '11, 21:32

DENISE's gravatar image

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edited 18 Feb '11, 01:49

TaxQueries's gravatar image

TaxQueries ♦♦

Hmmmm - possibly - however, if reported on Form 1099-MISC (which rents normally are) corporate payee's and tax exempt entities, such as a retirement fund, are exempt from reporting until 2012 (unless the law is changed or repealed). - However, if the property management company is a reportable entity with respect to the rent (ie sole proprietorship, partnership, disregarded entity) then it may want to issue "nominee" 1099's just to document that the income reported to it on any 1099-MISC forms it receives did not belong to it and were passed along to the beneficial owners of the payments. Issuing a 1099 to a payee that is exempt from BU withholding does not affect the payee where the payee is appropriately reporting the payments. If in doubt, issue the 1099.


answered 17 Feb '11, 06:07

Pat%20Haggerty's gravatar image

Pat Haggerty
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Asked: 15 Feb '11, 21:32

Seen: 2,244 times

Last updated: 18 Feb '11, 01:49