1099 for Landlord?

If the rental agent sends out a 1099-rents with gross rental, you deduct agent's fee on your schedule E.

With or without a 1099 you report gross rents on Schedule E and deduct all expenses, including those paid for you by your agent.

And send them a 1099-misc for the agent's fee (unless rent reported is NET). ;-)

The 1099 listing rents is appropriate ONLY if the agent deposits gross rents into his bank account and disburses it to you via the agent's check. Note that these disbursements may already be less the fee - and if the 1099 matches, you should have no fee deduction for the NET rent reported. However, if you receive the tenants checks from the agent and cash/deposit them yourself, the 1099 is INAPPROPRIATE.

Sorry, but 1099-misc would be inappropriate, since it is not in connection with fee payer's trade or business.

This is usual practice of course, since real estate agents collects for the client and remits net rentals after deductions for agreed upon expenses, e.g. commission and repairs. Gross rentals are always thus reported correctly.

ChEAr$, Harlan Lunsford, EA n LA

Granted that rental properties are generally considered section 212 activities, but in practice, I have seen people issue 1099-MISCs listing NEC to their rental management companies before, especially when they get

cash/deposit

Harlan Lunsford wrote in news:6n%_k.5269$ snipped-for-privacy@bignews6.bellsouth.net:

The problem I've had is the agent does accrual accounting and I do cash. I've had some discussion as to "constructive receipt" but I've been showing amounts as received by me rather than accrued by the agent.

scott s. ..

Sleep well tonight and don't worry. So your reporting on the cash basis might differ by, say, two months rental from agent's reporting. IF IRS ever questions the mismatch, simply explain the situation. make sure to keep good records, though.

ChEAr$, Harlan Lunsford, EA n LA