Rental Property - Did you pay anyone $600 or more related to this property?

Forum|Forum|3 years ago
February 2, 2023
1 reply
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Turbotax asks "Did you pay anyone $600 or more for work related to this property?" and it list some examples including "Property Management" and then it asks again..

"Did you pay for any work on this property in 2022 that would require a Form 1099-NEC?"

It gives 2 choices to answer this questions:

"Yes, I paid for work that required a form 1099."

"No, I did not pay for work that required a 1099"

It then further gives 2 more choices:

"Yes, I issued 1099's."

"No, I did not issue 1099's."

For my situation, I pay a property management company (more than $600) to manage my rental and they pay their own vendors for work needed at my property. The management company is an LLC filing as a corporation and does not require me to send them a 1099-NEC.

So, do I answer the above questions "Yes, I paid for work that required a form 1099" and "No, I did not issue 1099s."? Or do I answer no for both?

This is what's confusing because I did pay the property management company more than $600.

AliciaP1

You should answer both questions No. Since you know the management company is an LLC filing as a corporation, the correct answer to the first question is "No, I did not pay for work that required a 1099".

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