Are 1099s required for property managers or landlords?

Question

Help! I'm in WA state and have invested in residential real estate for several years - all management is done via a 3rd party. I just caught wind of some changes to the tax code that might make issuing a 1099 required (from the landlord, me, to the property manager).

This seems off to me though, because management fees are already reported by the PM on their own tax records...sources online seem to vary by state / not refer back to the actual tax code. I would be so appreciative of any guidance or thoughts! Thanks in advance!

Nathan Gesner · Answer

Talk to your CPA. I'm not aware of any law requiring the Landlord to issue a 1099 to the Property Manager.

The PM collects the money and pays it to the Landlord, which is why the PM sends the Landlord a 1099. The Landlord typically doesn't pay any money back to the Landlord so a 1099 would be unnecessary.

Lacey Hunter · Answer

Thanks so much!  And - confirmed by CPA.  Basically since the income is being captured/reported by both sides (the PM reports/is taxed on the management fee income, the owner reports/is taxed on the net rental income on their own return) there's nothing further to do.

Thanks Nathan!

Perry Rohan · Answer

Hi, I just did my 1099s and can confirm that the property manager must file a 1099-NEC form to document gross rental income for the prior year. As far as PM income, I am not taking 1099 on that as it is reported as income on my Tax Return.

Hope that helps

Perry