Vacation Rental Management and filing taxes, w9s, 1099s, etc.

4 Replies

I am beginning to managing vacation rentals . Right now, I am assisting (cohost manager), and the owners are filing the various income /hotel motel taxes, and paying me a percentage to manage the property and guests.  I have claimed the income from the percentage the past couple of years along with my income from self employment as well as long term rental income on my rental property. I am thinking I need to go ahead and learn what all is involved with actually taking on full management and filing taxes each month. Airbnb does not require a w9 form but sends a statement at end of year.  Vrbo is asking for a w9.    If I begin to fully manage vacation rentals, what forms do I fill out and give to owners , what forms do they need from me?   Any insight or advice would be most helpful.  Thank you. 

Generally vacation rental managers need to issue a Form 1099-MISC to property owners for rents collected.

You should also provide owners with a Form W-9 as they may need to issue a 1099-MISC to you for the property management fees depending on how much they paid you during the year and what your tax entity status is.

Thank Eamonn. So, a 1099-Misc is what is used when you recieve money that is not actually yours but is money you  receive and need to give to who it belongs to.  Correct?     How would I find out my tax entity ?  Should I just issue w9 and a 1099 to owners? 

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@Juanita Vainas

"So, a 1099-Misc is what is used when you recieve money that is not actually yours but is money you receive and need to give to who it belongs to. Correct?"

Not exactly... A 1099-MISC is used to report rents collect by a property manager on behalf of a property owner and non-employee compensation paid to an independent contractor, among other things.

"How would I find out my tax entity ?"

If you don't know you're most likely a sole proprietor. Have you formed an LLC or other legal entity? Have you made a tax entity election for said legal entity by filing form 8832 or 2553?

"Should I just issue w9 and a 1099 to owners?"

I cannot say whether you should or not because of the limited information provided.  I'd encourage you to read the instructions of those forms to investigate whether or not they apply to you.  If it gets murky or confusing bringing a tax pro onto your team may help.

Oh, I do file as a sole proprietor for my cleaning and multi services business and am very thankful for my tax guy who has been with me for years to file our taxes and to patiently help me along I have long term rental property’s income and expenses that our tax guy places figures where they belong  but now I am entering a different arena and will need to collect money and send to owner minus commission , I think. I just don't  know much about the w9 and 1099 forms.    I believe I am supposed to fill out W9 to give to Airbnb/Vrbo so they can send me money from money collected on behalf of owner from guest stays. The Owner needs to have me do a w9 for them to pay me commission if I don’t subtract commission ,or even if I do subtract commission.  I need to get w9 from owner to pay them the money received from bookings  And 1099’s are given when? at end of year? the money received on behalf of owner  each  month is  totaled on a 1099 and given to owner for their taxes at end of year? Do I need a 1099 (with amounts paid to owner to show that the money collected on their behave didint go to me) to give to my tax guy?   Sorry, I can be a dafty but if said a number of times in different ways and questions asked differently,  and once I am actually doing the paperwork it will gradually sink in. Thank you for your responses. Very much appreciated!