For 199A Tax Deductions, Must Landlords Give 1099s to Vendors?

It’s a fact…

The Tax Cuts and Jobs Act gives you a possible 20-percent tax deduction on your rental property.

But that’s only if your rental property is a trade or business, and that comes with its own burdens!

For example, Section 199A final regulations stipulate that under tax code Section 6041, a trade or business must issue 1099s to certain vendors.

So in effect, the IRS is implying that you should consider the appropriateness of not giving 1099s to vendors if you are asserting that your rental property qualifies as a trade or business for the Section 199A deduction.

How should you handle this tricky situation? Read my new article titled Tax Tips: For 199A Tax Deductions, Must Landlords Give 1099s to Vendors?

Three ways our fact-filled article can help you:

1. We’ll help you solve the 1099 dilemma you face. You likely have not sent 1099s to your rental property service providers and probably don’t want to. We get it. But to lock in your Section 199A deduction on your rentals, the 1099s can help you assert that your rentals rise to the level of a trade or business. You’ll get the whole story when you read the full article.
2. You’ll learn about a very important deadline. As you are reading this, you’re likely having a problem with the 1099 filing deadlines, some of which were on January 31. That’s the bad news. The good news is that if you hurry and file now, you can likely avoid any monetary penalties. You’ll get all the details when you read the full article.
3. We’ll explain the benefits of sailing into a safe harbor. Don’t forget that you can ignore the 1099 issue for purposes of your Section 199A tax deduction when you use the safe harbor provisions of the law. We’ll provide our thinking on this extremely useful option when you read the full article.