• Home
  • Blog
  • About
  • Education
    • CHOOSE FROM THE BEST
      ADPI Has Created Powerful Education, Resources, and a Strong Community To Help Military Families Grow Their Passive Income and Wealth.
      CHOOSE FROM THE BEST
  • 🔥Find Agent or Lender🔥

Receive Pro Tips & Insider Knowledge On How To Successfully Build Your Real Estate Empire

Short Blog: 1099s Explained

Written by: NCH


If you’re self-employed, or if you’re paying someone that’s self-employed, you need to be aware of the rules for issuing 1099’s.

The IRS has established guidelines for reporting various income that is not reported on the standard W2 Forms. There are 21 different 1099’s that can be used depending on what needs to be reported to the IRS.

As a real estate investor, you must send a 1099 to anyone you’re paying $600 or more per year, with a few exceptions:

Who do you have to send 1099’s to?

  • Individuals
  • Partnerships – General Partnerships, Limited Partnerships, LLP, LLLP, PLLC
  • Trusts
  • Sole Proprietors

Who does NOT need 1099’s?

  • Corporations – C-Corps or S-Corps
  • LLC’s or Ltd’s taxed as a C-Corp or S-Corp

If the business has “LLC” or “Ltd” you must request a W-9. Remember two important things: you can’t issue a 1099 unless you have a W-9. You can never be penalized for issuing too many W-9’s. You can be penalized for not issuing 1099’s or issuing them late.

Your tax professional can help you determine which 1099 will need to be issued. Most 1099’s are due before January 31st each year. You send one copy to the person you paid, one copy to the IRS, and one copy you keep for your records.

If you are ever uncertain, ask the business or person you’re paying for a W-9. (It’s best practice to ask for a W-9 before you pay someone).

If you’re looking for tax assistance for this upcoming season, book a consult with NCH here: https://www.nchinc.com/adpi

Kelly Madden

Kelly Madden

Kelly is a 14-year Air Force spouse, real estate agent, real estate investor, and virtual assistant. After starting out as an intern with ADPI in 2019 and later acting as ADPI’s blog coordinator in Jan 2020, Kelly is thrilled and honored to take on the role of ADPI’s new Community Manager as of November 2020. She looks forward to building our community and supporting our members throughout their real estate investing journey.
Kelly Madden

Kelly Madden

Kelly is a 14-year Air Force spouse, real estate agent, real estate investor, and virtual assistant. After starting out as an intern with ADPI in 2019 and later acting as ADPI’s blog coordinator in Jan 2020, Kelly is thrilled and honored to take on the role of ADPI’s new Community Manager as of November 2020. She looks forward to building our community and supporting our members throughout their real estate investing journey.
Share the love
Facebook
Twitter
LinkedIn
Pinterest

Receive Pro Tips & Insider Knowledge On How To Successfully Build Your Real Estate Empire

ADPI Team Pic

Our team strives to educate, mentor and empower active duty service members, veterans, spouses and military families to reach financial freedom through creating passive income through real estate investing. Our goal is for Active Duty Passive Income (ADPI) members to own as much of America as possible.