A common question from rental property owners is:

“Can you issue separate 1099s to each partner who owns the property?”

This situation often comes up when a rental property is owned by multiple investors, partners, or members of an LLC. While it may seem logical to divide the income among owners at the property management level, IRS reporting rules do not allow property managers to do this.

The 1099 Must Be Issued to the Legal Payee

For tax reporting purposes, a property manager must issue the 1099 to the legal entity or person listed as the payee on the W-9 form and management agreement.

That means if the property is owned by:

  • An LLC
  • A partnership
  • A trust
  • Or an individual owner

…the 1099 must be issued to that…

422 Views, 0 Comments

Read Full Post