A 1099-MISC is a tax form that reports rents and other income to the IRS.
- I paid Hank the Handyman more than $600 last year. I filed a 1099-MISC form with the IRS to let them know.
- Sam Smart earned $10,000 in rent and other income. His 1099-MISC reported these amounts to the IRS.
- I couldn't believe how easy it was to e-file my 1099-MISC forms using Buildium!
A reimbursement is a repayment of an expense.
- Hank the Handyman bought me a pizza. I gave him $10 to pay him back.
- My employee ran to the office supply store to buy some toner on their way into the office yesterday morning. They gave me the receipt and I gave them money out of petty cash to cover the cost.
Reimbursements are for W-2 employees only. Reimbursements should not be considered when calculating 1099-MISC batch totals. See Form 2106 , Form W-2, or discuss with your tax advisor. (Reimbursements are a complex topic.)
If you e-file a 1099 for a vendor through Buildium, the total should be the gross amount paid during the tax year. If you feel there was an amount that reimbursed the vendor, the IRS expects the vendor to include that amount as income (from the 1099-MISC) and also deduct that money as an expense on another tax form, such as the Schedule C or similar.
If your vendor did not track their expenses over the year, you can provide a vendor ledger report or the attachments tied to checks or bills. It is likely that they will need to provide their own records as well, depending on the nature of the reimbursement.
The vendor ledger report shows the line by line details of checks and bills, making it simple for your vendors to see what was included. It does not include data from inactive properties. Reactivate properties before running the report.
If you have W-2 employees, Buildium does not have the ability to mark transactions as reimbursements at the present time. You'll will need to manually calculate the reimbursed totals. The vendor ledger report will assist you. It shows a line by line detail of checks and bills.