I bought a vacation rental property in 2022 so this is the first year that I'll be preparing a tax return including income and expenses from the property. We utilize a housekeeping service (LLC) to clean the property after every rental. We only own this one rental property and we operate it ourselves (not through a business or LLC). Am I required to generate a 1099 for the housekeeping service?
I found this article that says private landlords aren't required to file 1099 to vendors - https://www.keepertax.com/posts/do-i-need-to-file-a-1099-for-my-rental-property
@Jeff0412 wrote:
I found this article that says private landlords aren't required to file 1099 to vendors - https://www.keepertax.com/posts/do-i-need-to-file-a-1099-for-my-rental-property
1099s are for trade or business reporting. Unless your rental activity rises to the level of a trade or business, you probably do not need to file a 1099 for payments made to vendors.
However, your rental activity can be treated as a trade or business for the purposes of the Section 199A (QBI) deduction if you qualify. The link below is the Rev. Proc. 2019-38 which provides a safe harbor for that purpose.
See https://www.irs.gov/pub/irs-drop/rp-19-38.pdf
In that event, you would almost certainly would want to issue 1099s where applicable to substantiate the QBI deduction.
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