1099s to Vendors required

[Edward Green]

We have a few properties managed by a property manager. They pay vendors and they pay us, after taking their cut, then we receive a statement from them every month.

My CPA is saying we need to collect W9s from the vendors (carpet, cleaning, everyone that gets paid more than $600) even though they're paid by the management company.

My question, do we need to hunt down W9s from the vendors after the new 2021 rules? Or just let the property manager handle it issuing 1099s to the vendors? What do you guys do? Is my CPA wrong? 

[Bjorn Ahlblad]

Your CPA may think he/she is right-how much expertise does he/she have with REI? My CPA never asked about 1099s when we used a PM. I certainly would not chase the PM's vendors, I would have no need or desire to know who they are and that is what I would tell the CPA. All the best!

[Nathan Gesner]

Quote from @Edward Green:

We have a few properties managed by a property manager. They pay vendors and they pay us, after taking their cut, then we receive a statement from them every month.

My CPA is saying we need to collect W9s from the vendors (carpet, cleaning, everyone that gets paid more than $600) even though they're paid by the management company.

My question, do we need to hunt down W9s from the vendors after the new 2021 rules? Or just let the property manager handle it issuing 1099s to the vendors? What do you guys do? Is my CPA wrong? 

Your CPA is wrong. The vendor is already provided a 1099 by the Property Management company (or should be). They do not need a second one from you.

[Drew Sygit]

@Edward Green since you're not payng vendors, why would you have to collect W-9s & issue 1099s?

[Chris Seveney]

@Edward Green

Not a CPA but I have never heard of this. You only give 1099’s to those you have cut a check to over $600. You cannot 1099 someone you have not paid.

Side note: if you use a credit card to pay the credit card companies send the 1099 not you.