Am I required to issue a 1099-NEC to tenant who received rent credit in exchange for services performed at property?

Forum|Forum|2 years ago
January 21, 2024
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I own one rental property with three units. I made an agreement with one of the tenants to provide a $100 rent credit each month in exchange for services performed at the property. The tenant takes all trash and recycling cans to the curb and back on collection days, cleans the common areas, handles snow removal, and removes weeds. The agreement is documented and signed. Do I need to issue a 1099-NEC to the tenant for the total amount of rent credit that was provided?

DMarkM1

Yes, assuming the tenant has not set up his business as a corporation, then you would issue a 1099-NEC to him for the total rent credits paid during the year once the total amount of credits exceeded $600. Here are the instructions for 1099-NEC for more detailed information.

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