QBI/Rentals/1099s

Technical topics regarding tax preparation.
#1
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If no guidance is forthcoming from the IRS, we'll each make our determination on a client-by-client basis of whether the rental activity rises to the level of a trade or business for QBI purposes. I think we agree that if it does, 1099s are warranted and should be filed.

If the client is an individual with a rental, or multiple rentals, are you going to have a client issue a 1099 to a vendor using his/her social security number? If not, will you have them apply for an EIN? If so, What type of entity will you check off on the SS-4..."Other"? The same with question 10, "Reason For Applying"?

The concept of filing 1099s is sound but I'm wondering about the logistics of the 1099s.
 

#2
HowardS  
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I normally get them an EIN to protect their SSN. "Other" works.
Retired, no salvage value.
 

#3
Bob A  
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Taxalmancer wrote:If no guidance is forthcoming from the IRS, we'll each make our determination on a client-by-client basis of whether the rental activity rises to the level of a trade or business for QBI purposes.


This keeps coming up. I understand why it does. I intend to take QBID in every applicable for profit rental case. I simply can't see myself not taking the deduction and therefore subjecting my client to more tax. I mean, who am I to do such a thing on a guess. I have a related paragraph in my engagement letter. Will IRS turn it down? I don't see any grounds to hang my hat on why they would......
 

#4
WEISSEA  
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If so, What type of entity will you check off on the SS-4..."Other"? The same with question 10, "Reason For Applying"?

Good point, thanks for bringing it up as I was sending a W-9( filled out by rental subcontractor) to potential QBI landlord clients. Client can get EIN in few minutes online. Make sure the no employees box is checked, lest client get letters on where are the 941's.
 


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