1099 Filing Question

[David Walton]

Hey everyone! I have a tax question to run by you before speaking to an accountant and paying a fee for that! 

We took over management for an owner of a 4-plex this year from a company that was shutting down the property management portion of their business. They managed, accepted rent payments, made income from repairs/fees, and provided the owner monthly disbursements from January - September of 2023.

We signed a new contract with the owner and were given tenant information/leases from the old company, as well as the security deposits. We utilized our own system to collect rent and make disbursements, etc from October - December 2023. 

The old company is telling me that I need to file the 1099 for the entire year for this owner. It just seems weird that I would have to file for money that passed from one entity to another that was not me. Again, happy to discuss this further with an accountant but wanted to see if this was in fact true or if this company is just trying to get out of filing 1099's.

[Michael Smythe]

@David Walton you can only file for what you were responsible for.

Since you didn't ASSUME the previous PMCs management contract, you are only responsible for what you collected since your contract was signed.

The other PMC is either misinformed or lazy.