Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Do we issue a 1099 for a TIC (Tenant in Common) entity?

BPO90245
Level 1
 
0 Cheers
4 Comments 4
Terry53029
Level 14
Level 14

I believe TIC's must follow IRS rules for informational returns

0 Cheers
BPO90245
Level 1

our client actually is renting out a space from this landlord,  who , when we asked for their (landlord's) W9, indicated on the W9 that they are a TIC entity.  We need to know if the rents we are paying out to this entity will have to be reported under a 1099?   thank you

0 Cheers
sjrcpa
Level 15

Yes. Only corporations are exempt from getting a 1099 for rental income.


Ex-AllStar
0 Cheers
BobKamman
Level 15

Most of the world knows "tenants in common" as something usually involving a couple of family members, or maybe friends sharing a vacation home.  But in California it sounds like a different creature, from this 2021 blog post:

https://compasscaliforniablog.com/what-is-a-tenancy-in-common/

I think you have to be there to know what they are talking about.  Something like a poor man's condo.  But you can have 10 people owning a building, and then an agreement among them about who gets to use which apartment? But is your client renting a home, or a business space? Or an Airbnb unit?  If the client is in business and renting from an individual who has the right to collect rent for the property he uses, then just use the SSN or EIN on the W-9 the owner gave you.  Unless, of course, they are refusing to provide a number because of being a TIC, which seems to me to be irrelevant.  

0 Cheers