Question

How to report payments for property management and repairs

Forum|Forum|5 years ago
February 8, 2021
1 reply
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I purchased my first rental property in August 2020. There were tenants that had existing leases. I have a property management company which collects the rent and arranges repairs for which I reimburse him. He sent me a 1099-MISC for the rent they collected minus their commission. I am assuming I need to file a 1099-NEC for their commission. Since he arranged and paid for the repairs, should I include the amounts I reimbursed him on the 1099-NEC as well? Thanks.

Not A Product Question

ColeenD3

No, you do not need to send him a 1099-NEC. His sending you the 1099-Misc is correct. You do not send him any forms for the reimbursement. It is not income to him.