If a landlord pays a company monthly for pest control services, does the landlord have to issue a 1099-NEC?

[IRonMaN]

The issuance of 1099 NECs are based on total dollar amounts, not frequency of payments.

[BobKamman]

An individual, an LLC, a corporation, a partnership?  Who is the payee?

[mac20coaching]

Not sure.  In which instance would instance would a 1099-NEC not be issued.  The total amount for the year will be at least $600.00.

[Just-Lisa-Now-]

They follow the same rules as anyone that's required to issue a 1099NEC

https://www.irs.gov/businesses/small-businesses-self-employed/reporting-payments-to-independent-cont....

[TaxGuyBill]

If (1) the rental rises to the level of a "trade or business", (2) the payments total $600 or more during the year and (3) the payment is to a non-corporation, then a 1099-NEC would need to be issued.

If any of those items do not apply, a 1099-NEC is not required.

[jeffmcpa2010]

Actually it may depend on whether the rental activity (even if reported on schedule E) reaches the level of activity to qualify as "trade or business".

What I have been advised at multiple CPE Classes if if you want the activity to qualify for the 199A deduction as a Qualified Business Income, you had better be issuing 1099's just as any other business would.

Prior to 199A many residential landlords would claim not to be a "business" and not file 1099 forms.

[jeffmcpa2010]

Bill got me by 16 Seconds....and probably explained it more completely as well.

[qbteachmt]

There was a rule established (before 199A) for landlords (even if self-managing your own property) to file 1099-NEC on service providers. Because it hit "mom-and-pop" residential landlords hard, there was tremendous backlash and it was rescinded.

https://www.buildium.com/blog/1099-for-property-management-2022-update/

"If you own the property you are managing (a private landlord), you do not need to file a 1099 for any work related to that property. This has been the case since the reporting requirements within the Affordable Care Act and Small Business Jobs Act were repealed in 2011."

https://www.rentecdirect.com/blog/1099-nec-and-1099-misc-changes-and-requirements-for-property-manag...

"If you self-manage the rental property you own, you may wonder about your 1099 requirements. Back in 2009, a clause in the Affordable Care Act required rental owners to report 1099-MISC income paid to service providers in relation to the rental property. In 2010, the clause was further clarified with the Small Business Jobs Act and the Health Care Reform Bill. BUT, by 2011 the requirement was repealed"

"Prior to 199A many residential landlords would claim not to be a "business" and not file 1099 forms."

Here's a good explanation for current conditions: https://www.nolo.com/legal-encyclopedia/do-landlords-need-to-file-form-1099-misc.html