1099 from a parking tenant?

Question

I have a new one, at least for me. I had a parking vacancy, and there was a new development across the street with no parking, so thinking I could really jack the price I contacted the realtor, and he jumped at it.  Then he wanted a lease, which we've never done, informally renting to tenants and neighbors. OK, sure. Now they're wanting to pay it one year in advance as part of closing a unit, and want a W-9 from me!  This surely means a 1099. Seems like a red flag to the IRS, one 1099 after 20 years of none.  I'm ready to cancel the deal, a few extra buck is not worth IRS scrutiny. Thoughts?

Linda Weygant · Answer

The only reason this would cause any IRS scrutiny is if you haven't been claiming that rental income.

Shmuel Waldman · Answer

If there are no 1099 then there are no 1099

I am not understanding your concern

Patrick M. · Answer

I don't understand if this is for a residential rental- no 1099, or a commercial rental tied to the realtors business- yes 1099.

I would just call the realtor and tell them that this parking space was for a residential space and as such you would not issue a W9.

Personally, I would take the 1099 in a heart beat- The very nature of a 1099 means they fluctuated from year to year- just make sure to report it.

Johann Jells · Answer

It would raise the question of where are the 1099s previously.

Michael McConlogue · Answer

I also have another business and I had to give out several W-9s this year. at first I didn't because I never did it before But my accountant said there making businesses get them now when there dealing with LLCs to help keep track of the taxes. Basically to keep an LLC honest. At least thats how I took it.