enduranceal wrote:

- quote -

No. 1099's should be filed for schedule e activities.

Now if just fixing up one property for resale (flipping?)
then no.

ChEAr$,
Harlan Lunsford, EA n LA

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If you actively manage the investment properties and also
sell real estate to others, you can be considered a real
estate dealer and the rental income would be considered
self-employment income. You would then be in a trade or
business, so you would be required to file the Forms
1099-MISC.

Otherwise, you are not REQUIRED but there is no prohibition
in filing them if you want to.

Rudy
www.LizcanoTaxServicesLLC.com

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Need to get some input from some of you who have more
experience.

Does someone who owns several properties as an individual
need to prepare a 1099 form to contractors who performed
services on the buildings that he owns. (New roofs, new air
conditioner/heater, etc.)

The taxpayer reports all of the income from 7 rental houses
on Schedule E on his personal 1040 return.

In reading the instructions for 1099, I see the requirement
for reporting on 1099's payments for services provided "in
the course of your business or trade". Although the
taxpayers job is managing his 7 properties full time he does
not file a Schedule C.

Does this mean he is exempt from having to file 1099's.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >