We initiate filings for 1099 every year at the end of January as required by the IRS. Owners get digital copies. Sometimes owners don't know or understand what they are and may call with questions, please direct those to our accountant, info@aloepm.com.

Note that 1099s are only for government reporting and owners should not be using them for taxes. We send owners an annual statement and 12 month cash flow later in January that will show all income AND EXPENSES for the previous year. That is what you will want to use when filing taxes, so you can get all the deductions you are entitled to.

Please note:

To locate your 1099:

Go to https://aloepm.rentvine.com/portals/owner.
Log in to your portal.
On the left-hand side, click on the "Files" section.
Look for the file named Year-1099.pdf – from there, you can download or print it directly.

Additionally, your cash flow details are under the "Statements" section in your portal. You can also pull your own reports anytime.

Important Notes:

There is often a difference between your 1099 amount and the total cash flow you received. This is due to prepaid rent:
If your tenant paid January rent in December, that rent is classified as prepaid rent and is taxable, per IRS guidelines.
Prepaid rent does not appear on your statements as income for January, even though it will show as being paid on the 1st.

How is the 1099 calculated?

The 1099 total includes:

Total Operating Income during the tax year.
Net Change in Prepaid Rent during the tax year.

The IRS requires that prepaid rent be considered taxable income in the year it is received, even if the funds are for a future month. For more details, we recommend reviewing these IRS resources:

If you have questions about your 1099 or how these amounts are calculated, we encourage you to contact your accountant for assistance, as they are best equipped to provide guidance on IRS guidelines.

Why are you sending me a 1099?

A property management company sends landlords a 1099 form for two main reasons, both rooted in IRS regulations for reporting income.

1. Reporting Rental Income

IRS Requirement: The IRS requires any business that pays at least $600 in "miscellaneous income" to a non-incorporated individual or entity during the tax year to report that income on a Form 1099-MISC.
Property Management Company's Role: The property management company acts as a "payer" on behalf of the landlord. They collect rent from the tenants and then pay that income, less their fees and expenses, to the landlord. Because the rental income belongs to the landlord, the management company is required to report the gross rent they collected and paid to the landlord on a 1099-MISC.3 This ensures the income is properly reported to the IRS.
Form 1099-MISC: The specific form used for this purpose is typically Form 1099-MISC, with the rental income reported in Box 1.

2. Reporting Payments for Services

IRS Requirement: Similarly, if a landlord pays an independent contractor (like a property management company) $600 or more for services during the year, they are required to issue a 1099.
Landlord's Role: As a landlord, you are considered to be operating a business and are responsible for issuing a 1099 to your property manager if they are an individual or an LLC taxed as a sole proprietorship. This is typically done on a Form 1099-NEC (Nonemployee Compensation).
The "Payer" Issue: This is where it can get a little confusing, and it's why you often see the property management company sending the 1099 to the landlord. The property management company is the one paying the rental income to the landlord. From the IRS's perspective, they are the "payer" of the rental income to the "payee" (the landlord). The 1099 from the property management company to the landlord reports the money the landlord received. The landlord, in turn, may need to issue a 1099 to the property management company for the management fees they paid.

In short, the 1099 acts as a record of the rental income you received. The property management company is required to send it to you and the IRS to ensure that all income is being tracked and reported for tax purposes. It's a key part of the tax reporting and compliance process for rental property owners.