A 1099 payer is the entity that files a 1099 form with the IRS.
Synonyms include my property management company, me, or my association.
For example:
- I paid Hank the Handyman $1,200 last year. I'll send him (and 27 other vendors) a 1099 form to report that total to the IRS.
The payer is the person, business, or tax entity that paid the money to the recipient. In most cases, the payer is the property management company, landlord, or association.
Below, we offer general guidance on how to complete the payer section of the 1099 tax filing. We're not tax accountants. If you have specific questions that fall outside of the general categories below, you want to seek out the guidance of a professional advisor.
I am a property management company that manages rentals. Show
The payer is the property management company and should use their tax ID and contact information.
I am a property management company that manages associations. Show
The payer is usually the individual managed association because the property manager paid vendors using the association's bank account, money, and acts as an extension of the association.
In this scenario, you will need to override Buildium's automatic calculation of recipient totals. Our software assumes a single payer within the account. To calculate your totals, use a vendor ledger report.
- Run the for a single association at a time.
- Use the association-specific totals to override the amounts when you create a 1099 batch.
If you are familiar with Excel, you can run the report to CSV format and then use a pivot table to produce your vendor totals instead of creating one report per association.
I am a landlord.Show
You're in a gray area. Please check with your tax advisor.
If you do file, the payer is the landlord and should use the landlord's tax ID and contact information. The tax ID is usually the landlord's social security number.
You only need to file 1099s if you are in the "trade or business" or rental property management. Below is an excerpt from the IRS that you can use to begin your discussion with your accountant.
Trade or business reporting only. Report on Form 1099-MISC only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit. However, nonprofit organizations are considered to be engaged in a trade or business and are subject to these reporting requirements. Other organizations subject to these reporting requirements include trusts of qualified pension or profit-sharing plans of employers, certain organizations exempt from tax under section 501(c) or (d), farmers' cooperatives that are exempt from tax under section 521, and widely held fixed investment trusts. Payments by federal, state, or local government agencies are also reportable.
I am a landlord with one or more LLCs or corporate tax IDs. Show
The payer is the landlord and should use the landlord's tax ID and contact information for each of the individual LLCs. The tax ID is usually the registered to the LLC.
This suggestion assumes that you do not have a separate entity that collects the rents, much like a professional property manager would. If you're not sure, talk to a tax advisor.
In this scenario, you will need to override Buildium's automatic calculation of recipient totals. Our software assumes a single payer within the account. To calculate your totals, use a vendor ledger report.
- Run the for a single property, LLC, or rental owner at a time.
- Use the property-specific totals to override the amounts when you create a 1099 batch.
If you are familiar with Excel, you can run the report to CSV format and then use a pivot table to produce your vendor totals instead of creating one report per property.
I am a self-managed association.Show
The payer is the association and should use the association's tax ID and contact information. The tax ID is usually the registered to the association.
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