Question For All My Tax Pro Buddies

[Nicholas Aiola]

I'd like to revisit a back-and-forth, grey-area topic in light of the TCJA and new Section 199A regs... Landlords issuing 1099s.

As we know, the requirement to issue 1099s for landlords who operate rentals that don't rise to the level of trade or business was repealed. Some tax pros prefer to continue issuing 1099s anyway to be on the safe side. In the past, I typically left it up to the client in this instance - I explained both sides of the fence and let them make an informed decision.

Now, we want landlords to be considered a trade or business for purposes of Section 199A, which is a grey area in and of itself with respect to landlords. That said, at the risk of beating a dead horse, it seems to be the general consensus that the 20% QBI deduction will apply to most landlords, as we've already discussed on a few other threads.

My opinion is to issue 1099s wherever possible in the hopes it further solidifies the "trade or business" stamp.

Thoughts??

@Michael Plaks @Natalie Kolodij @Ashish Acharya @Matt Ward @Steven Hamilton II @Brandon Hall @Daniel Hyman @John Hyre (won't let me tag you for some reason, John) 

[Brandon Hall]

Yes, landlords who have rental activities that rise to the level of trade or business need to file 1099s.