property management software and 1099 K

[Mindy Perry]

Hi everyone, just wondering what your experiences are on receiving 1099k form from using a property management software to receive online rent payment. I am thinking to switch to online rent collection from receiving checks in the mail, but worried that receiving 1099k will increase the complexity during tax filing time. Any insight would be really helpful. Thanks so much!  

[Basit Siddiqi]

@Mindy Perry

You need to report rental income regardless if you get a tax form or not.

[Timmi Ryerson]

I spent many years managing myself and personally collecting rent checks.  Now I use Smart Property Systems to collect rent through an on line portal. My tenants pay on time and I love it.  As far as the 1099, that is for payment to owners if you manage for someone else or your vendors whom you pay for repairs and maintenance.  You are required by law to send  1099 to the government, and to the vendors if you have payments of $600 or more in a calendar year.  The 1099 is not given to you for rents you receive.  But you are required to file a Schedule E in the US every year showing the total rents you received, the expenses you had against those  rents and your subsequent profit or loss.  My software provides me with that data so all I do is print it out and give it to may tax accountant.  I get my rents paid on time and my data is automated.  I think that is pretty cool.

[Erik Acheff]

I know this is an old post, but I can not find an answer online. If the property manager uses a payment app integrated with the property management software to collect rent for the landlord, this is not gross income for the property manager. Yet the payment processor is issuing the 1099-K to the property management company. I have this issue with Buildium for all the online rent payments received through their payment app. Has anyone else had this same issue?

[Simon W.]

Quote from @Erik Acheff:

I know this is an old post, but I can not find an answer online. If the property manager uses a payment app integrated with the property management software to collect rent for the landlord, this is not gross income for the property manager. Yet the payment processor is issuing the 1099-K to the property management company. I have this issue with Buildium for all the online rent payments received through their payment app. Has anyone else had this same issue?

Buildium's 3rd party will issue the 1099 to the PM company. The PM company needs to issue their own 1099s to the owners. 
The PM company doesn't really do anything with the 1099s since the rent money doesn't belong to the PM. 

[Drew Sygit]

@Mindy Perry

Really doesn't matter what software you pick as long as it has the features you want.

Two biggest challenges with ALL software:

1) None are perfect, so deal with the tradeoffs

2) Most users rarely put in enough time to really understand how to utilize the software.