Tax Time: Important 1099 Tips For Property Managers

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We don’t want to scare you, but tax time is coming up quickly! For property owners and property managers, this time of year can mean a lot of paperwork. Form 1099-MISC is one of the things you should be working on now because 1099s must be sent out very soon.

Keep reading to learn more about IRS Form 1099-MISC. We’ll tell you what it is, who it’s for and when it’s due. If you already know what 1099s are, feel free to skip down for tips to make it as quick and painless as possible.

Form 1099-MISC with green pen on top

What are 1099s?

Form 1099-MISC is a form used to report miscellaneous income, such as rent or fees for contract work. They can also be used to report royalties, prizes and awards.

When are 1099s required?

According to the IRS, you need to file a Form 1099-MISC for each person you paid at least $600 over the course of the previous year for:

  • Rents
  • Services performed by someone who is not your employee
  • Attorney fees

For property managers, this means you will 1099 vendors and property owners. Vendors include people like maintenance professionals, landscapers and bookkeepers. Did you pay a graphic designer more than $600 to work on graphics for your website or marketing materials? If the answer is yes, you would 1099 them.

There are also other reasons you would file a 1099, but many of them are less likely to apply to property managers. See the full list of filing requirements.

When are 1099s due?

In general, you must provide a copy of Form 1099-MISC to all recipients and the IRS by January 31 each year.

Is there a faster way to generate 1099s?

Yes! If you enter the right information, your property management software can save you the effort and complete 1099s for you. This is the information you need to have to generate 1099s in Yardi Breeze:

  • The recipient’s Tax ID or social security number
  • The tax payer name
  • The amount you paid to them during the calendar year

To get the amount, you can enter your own data manually or extract the number from Yardi Breeze if your numbers are up to date for the whole year.

What are the related forms?

If you plan on hard filing your 1099s – i.e. you plan on mailing them in – you will also need to generate a Form 1096. Form 1096 is a cover form used for paper filing only. Yardi Breeze can create this cover sheet for you.

Can you e-file?

Yes. In fact, you are required to submit 1099s electronically if you have more than 250. But even if you don’t, e-filing will save you time, as well as stamps, envelopes and possibly gas and a trip to the post office. Yardi Breeze can generate the e-file records you need. Once you add a transmitter vendor to your database (either your property management company or a third party, like a tax preparation company), all you have to do is download your records and upload them to the IRS.

Where can you find more information in Yardi Breeze?

If you’re a Yardi Breeze user, there are multiple 1099 resources available to you in our Help Center. Log in, then go to the Help Center and click Videos>Accounting>Getting Started With 1099s for a quick overview video.

Want more detailed guides? Go to Help Center>Accounting>1099 Forms for step-by-step set up and execution tips.

Free 1099 webinars for Yardi Breeze clients

Are you a visual learner? Sign up for a webinar to see 1099 tax magic in action. Go to Help Center>Live Training to pick a time and register for free. These 45-minute sessions happen every Monday, Wednesday and Friday through the end of January.

Stay tuned for more tax tips for property managers coming later this week!