Hi everyone

I am a new landlord from last year and working on my tax return. I found two new things along the process. First, 1099-NEC and 1099-MISC. Second, QBI deduction.

I bought two 8 unit multifamily properties in Q4 last year, they are owned by two separate single member LLCs with separate bank account and everything. Both properties are professionally managed by a local property management company. The property management company has my W9, and they will send 1099s to contractors or any repair mans. My ownership is so short, no major things were done except one or two turnover.

1. If I read the 1099-MISC correct, property management will send me 1099-MISC if there is more than $600 owner distribution. I didn't take any distribution, so there is no 1099-MISC. When I report my tax return, I still report the rental income, and expenses based on the income statement. What's the reason of giving owner 1099-MISC? For example, my rental property generates $10000 in rent with $4000 in expense, the net income is $6000. If I take $3000 as owner distribution and leave $3000 in property management company as reserve, it shouldn't affect how i report on my tax return, right?

2. As an owner, do I send 1099-MISC to the property management company? They do charged more than $600 management fee in 2021. I asked my property management company, but didn't get a clear answer. They only told me the AppFolio (property management software) will do all 1099s for them. I don't even have W9 from the property management company at this point.

3. For QBI deduction, the safe harbor requirement seems hard to meet, esp. 250 hours or rental services with time spent log. I spent a lot of time during the transition, but didn't really have time spent log. What do I need to show to qualify for Section 162 definition of trade or business? From what I read online, it seems doable, but what documents can prove I am qualified? "The preamble does discuss, however, two requirements for taxpayers to consider, derived from case law addressing trades or businesses under Sec. 162. First, a taxpayer must enter into and carry on the activity with a good-faith intention to earn a profit. Second, the taxpayer must engage in the activity on a regular and continuous basis (see Groetzinger, 480 U.S. 23 (1987)).".

Thanks