1099 Misc

Let us explore how to effectively organize your rental payments and ensure all expenses are accurately reported for tax purposes, Brendam24.

When issuing a 1099-MISC in QuickBooks Online, you must include both the rent and the dumpster fees. According to IRS guidelines, Box 1 of the 1099-MISC form is designated for reporting all real estate rental transactions.

In your case, you'll need to report the total amount paid to your landlord for the year, which is $2,045 monthly.

Here's the calculation:

• Monthly Payment: $2,045
• Total Annual Payment: $2,045 x 12 months = $24,540

Thus, you should report $24,540 on the 1099-MISC form for your landlord, as this total includes both the rent and shared dumpster fees.

Additionally, you can refer to this comprehensive guide on preparing and filing your Federal and state 1099s using QuickBooks Online: Create and file 1099s with QuickBooks Online.

Furthermore, you might also want to review this article on generating 1099 reports in QuickBooks, which details who needs 1099s, payment totals, and more:  Create 1099 reports in QuickBooks.

I wish you smooth sailing with your forms in QuickBooks Online, Brendam24. I am confident this information will help you navigate your 1099-MISC documents efficiently. If you need more help, I'm always here to help.

I forgot to mention will our 2k deposit also need to be included with our yearly rent & dumpster fees we have paid annually when we have QBO file our 1099-MISC? We gave this deposit with our first month's rent of 2k in January 2024, for a total of 4k the very first month we moved in.

Thank you for your prompt response, @brendam24. Allow me to share some insights about 1099misc forms.

The $2,000 security deposit you paid, along with the first month's rent, should not be included in the yearly calculations for rent and dumpster fees when filing your 1099-MISC. Security deposits are not considered income for the landlord at the time of receipt, as they are intended to be either returned at the end of the lease or applied towards damages or unpaid rent. For accurate filing and guidance, I suggest consulting your accountant about this.

Moreover, you can visit this link to learn more about 1099s:

• Understand payment categories for the 1099-MISC and 1099-NEC
• Create 1099 reports in QuickBooks

We'll be here if you still have concerns about your tax forms. We are available 24/7 to assist you. Have a great day, and take care.

Now in regards to the dumpster fee to be included in the 1099, will this be true when we are essentially reimbursing him back for what he pays monthly? To add a little insight our landlord gets the dumpster invoice and he pays for it himself then about a day before the 1st of the month when our rent is about to be due he sends us an invoice for our share of $45 ea. so he can be reimbursed for what he has already paid. 

I wanted to clarify something quickly, as I am not sure this would change what is reflected in the 1099. So the dumpster fee we pay each month is a reimbursement to the landlord. Should it still be included in his 1099 as you state above?

Thanks for following up with the Community, brendam24. I appreciate your detailed information.

To properly identify what should and shouldn't be showing on 1099 forms, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:
 

1. Go to our Find a ProAdvisor page.
2. Use the City or ZIP search field to specify a location.
3. Select Find a ProAdvisor.
4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.
   
   

Once you've found an accountant, they can be contacted through their Send a message form.

You can learn more about working with 1099s in our Create & file 1099s article.

Please don't hesitate to send a reply if there's any additional questions. Have a lovely Wednesday!