The trade-or-business test
The 1099 filing requirement applies to a trade or business. If your rental activity rises to the level of a trade or business, you generally must issue Form 1099-NEC to any unincorporated contractor you pay $600 or more during the year for services — plumbers, property managers, cleaners, landscapers.
Who is exempt
You generally do not send a 1099 to corporations, or for payments made through a third-party network or credit card (the processor reports those on 1099-K). Always collect a Form W-9 before you pay a vendor so you have their taxpayer ID and entity type on file.
Casual landlords
A single passive rental may not be a trade or business, in which case the 1099 requirement may not apply. The line is not bright, so many landlords issue 1099s to be safe. Deadlines matter: 1099-NEC is generally due to recipients and the IRS by January 31.
Frequently asked questions
Do I 1099 my property manager?
If they are unincorporated and you paid $600 or more for their services and your rental is a trade or business, yes. Many management companies are corporations, which are exempt.
What if I paid by credit card?
Payments by card or third-party network are reported by the processor on Form 1099-K, so you do not also issue a 1099-NEC for them.
What form do I collect first?
Always get a W-9 before paying a vendor so you have their TIN and entity type to determine whether a 1099 is required.
Sources
Educational information and estimates only. Not tax advice. Tax rules change and vary by situation; consult a qualified tax professional before acting.