1099'ing My Property Manager

[Alex Wong]

So I hired a property manager last year who managed my construction and rent collection. In terms of construction, he is essentially a pass-through - I paid him then he immediately paid for the contractor that he uses. 

For illustration purposes, I sent him $10,000 for a tenant turnover + other miscellaneous work, and he sent me $20K for rents, net of property management fees. Do we both have to send each other a 1099 or is the amount netted, with him sending me a 1099 ? 

[Michael Plaks]

@Alex Wong

He sends you a 1099 for total rent collected. You send him a 1099 for "non-employee compensation", equal to his fee. He also sends 1099s to contractors he hired on your behalf.

None of that is necessary if you paid each other electronically, as in credit cards or PayPal.

https://www.biggerpockets.com/forums/51/topics/796928-tips-on-sending-1099-misc-to-contractors