When putting together the list of people I need to do a 1099 Misc for, do I send one to the escrow company? If so am I only sending in the amount of their company fees or does the amount include down payment + lender fees + purchase/sell price amount, realtor fees paid, etc?? Or are the non escrow company fees separated for each company?
If non escrow company fees are separated out, do I send to lender in the amount of the monthly payments only or monthly payments plus loan fees + purchase loan?
Nice try, but the 1099 to the escrow co is futile - - will not fly. You contracted for the services when you bought the property.
What you CAN do, is write-off or amortize the closing costs.
No, you don't need to 1099 the escrow co., just like you don't need to 1099 Home Depot.
thanks guys.... appreciate your comments.
@Wayne Brooks where are the Home Depot charges reported if you rehabbed a property and put it in service as a rental. Do you depreciate what you spent to get the property ready and write off the expenses to make it rent ready?
"Get the property ready" and "make it rent ready" are the same thing.....that is right when you buy it, getting it ready for the first tenant....all added to cost basis and depreciated, not expenses.
@Wayne Brooks I was thinking of expenses like appliances, landscaping, other improvements that are not required to make the property ready but are added.
On a related note, what if you cannot get a W9?
Those are all in the same category...if done before you rent it. If you wait until after it's rented, then it could be expenses, if they're not capital improvements. For people that need to be 1099'd, you need to get the W-9 Before you pay them. If not, ask your accountant
@Shadonna N. If you can't get a W9 and they refuse use to give you any info, you must withhold 28% of the IC's compensation. It's a bookkeeping nightmare, but that's what the IRS wants.