Are rent payments reportable on a 1099?

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The answer to your question depends on the payee's form of incorporation. If you are making rent payments to a partnership, individual, or sole proprietorship and the payments for the year total $600 or more, then it would be reportable. If the payments are made to a C Corporation or S Corporation, then generally these payments are not reportable. Requesting Form W9 from your vendors requires them to certify their incorporation form so that you can determine if they are subject to reporting.

Any amounts or fees of $600 or more paid as part of a rental leasing agreement are reportable in Box 1-Rents on Form 1099-MISC. Therefore, rent, maintenance fees and property taxes stated within a leasing agreement are reportable in Box 1. (See Form 1099 Instructions).

However, according to IRS information reporting service agent Ms. Pinckney (ID# 1001346), there are exceptions and variables to this general rule and she recommends contacting the IRS to discuss particular situations. The IRS Information Reporting Line contact number is 866-455-7438.

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